Kansas City Attorney Explains Using Chapter 11 for Business Bankruptcy
Chapter 11 business bankruptcy is form of debt restructuring intended to help businesses falling behind on payments and potentially facing legal action. As business bankruptcy attorney Bradley D. McCormack explains in this video, Chapter 11 reorganization can help businesses with serious debt or impending foreclosure find ways to satisfy their creditors.
If your company is dealing with overwhelming debt, Chapter 11 business bankruptcy may help your business restructure certain debts in addition to getting rid of others. This reorganization of your debt can result in a brighter financial future for your business with less business debt. Call our Kansas City business bankruptcy attorneys to get started with a free phone consultation.
This bankruptcy option is the Chapter 11 reorganization structure. It’s the type that has made a lot of news recently. GM and Chrysler have used those functions. It’s an ability for a company to reorganize if they have too much debt, if they have bad terms with a secured debt, and a way to continue on operating their business.
Obviously, one of the major warning signs for a business if they were coming up on a foreclosure date, if they have a secured creditor who’s threatening some very serious legal action again them; that’s sort of a drop dead date that something has to be done if you want to keep your business during that time. Other signs are just the feel that the small business owner has, that there is too much debt. There are bills that can’t be paid. There is too much stress on the company for it to go forward.
At that point, they really need to look at it and talk to a business bankruptcy attorney to see if there are options in the bankruptcy world in order to reorganize and get out of that situation so that the business can become profitable.