Owning and operating a small business in Pennsylvania is not easy, and there are times when some businesses accumulate a large amount of debt. Like personal debt, business debt can lead to many inconveniences, including calls from creditors, repossession of assets and more. If you are a small business owner and your company is dealing with debt problems, you may consider the benefits of bankruptcy.
Chapter 11 bankruptcy is a common choice for small businesses in financial duress. By making this choice, you can confront the debts that are plaguing your business, all while maintaining operations and working for a better financial future. If you believe that your business could benefit from this step, you would be wise to take the steps necessary to protect the future of your company.
What to expect from the process
Chapter 11 bankruptcy reorganizes the debt of the business. If you apply, you will be able to present a plan that outlines your intentions for future profitability after the bankruptcy process is complete. The bankruptcy process is complex, but you can expect the following from the Chapter 11 process:
- The first step in this process is to submit the petition. Even after submitting your bankruptcy petition, you can continue with your business as usual.
- There are various documents and paperwork that the applicant will have to complete, gather and submit at the appropriate times.
- The goal of Chapter 11 bankruptcy is to allow for the business organization to become profitable again. This includes drafting a reorganization plan for dealing with and compromising with creditors.
The goal of filing for bankruptcy is to properly deal with the debt that has been disrupting and negatively affecting your business. Chapter 11 bankruptcy is not an easy choice to make, but it could be in the best interests of your entrepreneurial venture. This step could help you halt your current direction, change the course of your finances and help you obtain a profitable future.
Don't let debt keep you from your goals
Debt can derail your business and keep you from reaching the next goal for your business. You do not have to let it keep control over your business. You can work to get rid of it for good. Chapter 11 bankruptcy may offer you the opportunity to do this.
You may feel hopeless, but there are likely options available to you. You would be wise to consider all of them before you make an important decision regarding your financial future.