Many a time we hear from a trustworthy bankruptcy Butler PA about chapter 11. It is said that chapter 11 is a gateway to escape from the heavy burden of bankruptcy in a business. It is true that chapter 11 helps to get rid of debts to some extent. On one hand, it reduces the interest rates and debt amounts. On the other hand, it helps to break different leases and contracts legally. Along with that, it provides many other benefits including extending the terms of the loan payment and so on.
But the question is –
can all types of businesses opt for it? It is a query from many business owners. Being confused by the complexity of legal hassles, they do not understand if they are eligible for it or not. Probably, you are also in the same boat. You want to know the details about you. Relax. You have come to the right place. Let’s know which businesses can file chapter 11.
Solo owners-
If you are a solo business owner or solo proprietor, you can file for chapter 11 with the help of a bankruptcy law firm.
Corporation-
Whether it is an S corporation or any other type of corporation, it is eligible for the scope. Also, partnerships, limited partnerships can also go for it.
Other companies-
Ranging from dealerships, franchisees, wholesalers, retail companies, construction companies, trucking companies, restaurants, real estate developers, to shopping malls, technology companies, apartment buildings, and so on- all types of businesses can file chapter 11. In short, any type of business irrespective of its nature can file it if they are facing debt problems or tax problems.
To clear your doubts about it, we can say that a handful number of popular companies, enterprises, and individuals have filed chapter 11 and have gotten rid of the hassles of debt. So, there is no shame in it. In fact, when you are stuck in debt, it is the best thing to do. A large part of the U.S. economy is saved every day using this opportunity.
Before You Go
So, you have decided that you will choose the path of chapter 11. Now, hire a learned bankruptcy attorney for it. They will guide you through the process efficiently.
