Chapter 11 bankruptcy can be a useful tool to buy time to pay your creditors.

Sometimes, due to cash flow problems, business owners find they cannot afford to pay current expenses, plus all the arrears on back debts on the time schedule demanded by creditors.

These old bills could be payroll taxes, sales taxes, arrears on bank loans, back rent, vendors demanding large payments, or credit cards with huge minimum payments.

Now is a good time for you to sit down and figure out the answer to four key questions:

  1. What are your normal monthly operating costs, assuming you did not have old debt that is squeezing your monthly revenues.
  2. Do you have enough monthly income to pay your current bills and still have some money left over to pay your old ones?
  3. How much are you now paying on your old bills each month?
  4. Could you benefit by a program that would you stretch out your old bills over several years?

If your answer to the last question is YES, then a Chapter 11 filing might benefit you.

Chapter 11 Bankruptcy is a way stop old creditors from bothering you, and give you breating time to strengthen your business. Then, you propose a payment plan that creditors get to vote on,  and which we will submit to the Court for approval.

Sometimes we can get you a discount; sometimes just time to pay. No two cases are alike. There are many variables.

It will place demands on your time, require you to report financial information to the court every month, and pay all future bills on time. And there are risks that we must guide you past. It will be more expensive than a personal chapter 7 bankruptcy to discharge credit card debt. But if you can follow the rules, it may save your business.

Chapter 11 Bankruptcy Reorganization is a useful took for individuals, corporations, partnerships, and limited liability companies.

The bottom line: If you come to us before there is emergency, we can help you take back control of your business.

I have been helping business owners for 40 years. I look forward to helping you, too.