Picking up from Small Business Bankruptcy: An Overview (Part 1)¸ the following provides an overview of the bankruptcy options for small businesses that are struggling with debt. Part 1 of this blog laid out some of the specific factors that need to be considered when choosing which bankruptcy option is most appropriate for a small business; it also provided some information regarding Chapter 7 bankruptcies for small businesses. Here, in Part 2, however, we will take a closer look at Chapter 11 bankruptcy for small businesses. It’s important to point out that small businesses cannot file for bankruptcy under Chapter 13, as this type of bankruptcy is reserved for individuals only.
Chapter 11 Bankruptcy for Small Businesses
More complicated than Chapter 7 bankruptcy for businesses, Chapter 11 is typically the best option when business owners want to keep their business open and continue operating during and after the bankruptcy case. With Chapter 11, the structure of the business is reorganized, and a repayment plan for all of the business’ debts is devised. Before Chapter 11 can proceed, the business’ creditors must review and approve the repayment plan, and the bankruptcy court must approve both the business’ reorganization and the repayment plan.
Colorado Bankruptcy Lawyers
If you are overwhelmed by seemingly insurmountable debt and are looking for a financial fresh start, contact the trusted Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C. For more than 35 years, Mr. Clarke and his diligent support staff have been successfully helping our clients resolve even the most complex bankruptcy cases for both individuals and businesses alike. Our experienced legal professionals are committed to providing each of our Clients with the personalized debt relief assistance they need, and we will work tirelessly to ensure that our Clients’ cases are resolved as favorably and efficiently as possible.
For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950 or email us some details about your situation by clicking here.