Starting a business or maintaining one is a difficult task. Even skilled managers in Florida too often find themselves trying to revive an organization that is no longer able to pay its bills.
Of course, sometimes the best decision is to liquidate the business, either through a Chapter 7 bankruptcy or outside the bankruptcy process altogether.
In many other cases though, a business in the St. Petersburg area can reorganize itself in a way that appeases its creditors and puts the organization back on track for profitability.
Chapter 11 is a restructuring option for businesses of all sizes
In some cases, a business may be able to restructure outside of bankruptcy, although this could involve considerable legal work just the same.
Sometimes, though, a business will need the protection of a bankruptcy court as it develops and pursues a reorganization plan.
The largest companies which file for a Chapter 11 bankruptcy often make the national news. However, businesses of all sorts of sizes and types, and even some individuals, may benefit from the restructuring that Chapter 11 offers.
In most cases, the leadership of a business will be able to get temporary debt relief and remain in charge of the business.
The crux of Chapter 11 bankruptcy is when a business submits its reorganization plan for the court’s approval. Depending on the circumstances, creditors which to stand to lose out on some of their accounts receivable will vote on the plan.
Small businesses may be able to benefit from some special provisions in the bankruptcy code that are supposed to make Chapter 11 more efficient for these businesses.
However, there are some additional procedures and obligations that a small business would need to be aware of. A concerned business owner should speak with an experienced bankruptcy attorney about this option.