If your company has faltered on the road to success, and debts have overtaken your ability to pay them, Chapter 11 Bankruptcy is an option to reorganize your business. Filing a Chapter 11 bankruptcy does not require closing your doors or selling the company to appease the debtors. Instead, it is a legal way to end collections harassment and come up with a plan for repayment of debts, capital improvements and future success. The question of whether to file a Chapter 11 bankruptcy usually comes down to having limited options.
Of course, other chapters of bankruptcies may be considered, but they frequently require downsizing, selling off assets, or closing up shop completely. If you want to hold on to your company and still believe that it can succeed over time, Chapter 11 gives you that opportunity. The majority of Chapter 11 bankruptcy cases are filed by business entities such as LLCs, and large corporations. Individuals are also eligible to file for Chapter 11 and it can be the best option for someone who is highly leveraged with valuable or cash flowing assets. In some cases, this is the only way to hold on to a company and remain solvent when income fails to meet expenses. JLG Lawyers delivers a professional and customized approach to your specific needs, depending on the situation at hand. If you believe that your company might benefit from a Chapter 11 bankruptcy, call our office at 818-630-7280 to schedule a free consultation with an attorney.