Every business goes through tough times. To help businesses face uncertainties like bankruptcy, Chapter 11 of the U.S. Bankruptcy Code comes to the rescue. The bankruptcy petitions allow debtors to reorganize debts, assets, and other business affairs. It provides a great relief to businesses in stress caused due to immediate threat of closure or harsh steps by the creditors.
It is advisable to hire an experienced and skilled bankruptcy attorney to maximize the restructuring bankruptcy solutions simpler and efficiently. Hence, filing Chapter 11 bankruptcy, at the earliest is a vital step. If you haven’t thought about it yet, don’t stress! We have curated the top advantages, to help you persuade for the same.
Chapter 11 Keeps businesses running
A business owner works harder to build a successful business and hence, would never dream to shut it down due to a financial crisis. Chapter 11 understands the same, hence, ensures that your business keeps on operating. This way you won’t lose your valuable customer base or your business.
Chapter 11 puts stay on creditors take
A creditor is not allowed to collect a debt, contact you or your representatives for payment of a debt, or file a lawsuit against your business, once the business has declared itself as bankrupt. Thereafter, it has successfully filled chapter 11. If still, the creditor indulges in such activities, he is liable for penalties and fines.
Chapter 11 provides emergency relief for continuing with operations
After filing chapter 11, the bank still permits the debtor to operate their business operation on an emergency basis. These emergency operation includes paying wages and other benefits to employees, liable to pay or file for taxes. In addition, it also includes contractual necessities like renting, insurances, and others. This way, the debtors have peace of mind that the bank won’t be closing their business entirely.
Chapter 11 scopes for loan availability at lower rates
The banks also permit the business for seeking loans at favorable rates to continue their ongoing business emergency needs like paying employees or buying supplies.
All of the above essential advantages of filing chapter 11 make the bankruptcy period a little less bothersome. You have peace of mind, you won’t lose your hard-earned business. So, hire the best debt relief law firm to file chapter 11 today.
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