Making the choice to file bankruptcy may only come after you exhaust other options. When you do decide, you may wonder what will happen to your business.
You may not have to liquidate your business even if you file for bankruptcy. Doing so under Chapter 13 or 11 may allow you to reorganize your debt and keep your company going. Find out what you can expect should you decide to go this route to regain your financial freedom.
Restructuring your personal debt
If your personal finances need retooling, filing for Chapter 13 may help you get back on track and keep your business. Unlike its counterpart, Chapter 7, Chapter 13 allows the restructuring of your debt and a feasible payment plan with which to pay it back. Under Chapter 13, you do not have to lose your business. You may have to figure out a way to
Dealing with business debt
Chapter 11 allows a business to enter bankruptcy. Again, it does not mean you need to close up shop and dissolve your LLC. Chapter 11 bankruptcy gives you the chance to renegotiate with creditors to regain a favorable financial footing. Doing this allows you to get your business matters on a positive footing without burning bridges with suppliers and creditors.
Too many debts may eat away at your accounts and reserves due to interest rates and penalties. Bankruptcy may allow you the chance to cut ties with some creditors under favorable repayment terms. As a business owner, bankruptcy may help you get the company’s debts under control and on a better path for success.
