When a business faces hardship, debts are mounting and profits just cannot meet the company’s obligations, an owner may have to consider filing for bankruptcy. Through filing for Chapter 11 bankruptcy, a business can continue to operate and employees get to keep their jobs. In the end, through a successful restructuring plan, a company may be able to satisfy debts, keep the doors open and possibly become profitable. If yours is a company that is facing hardship, consult with an attorney about your future. Through a restructuring plan that satisfies the court and creditors, you could save your business and your livelihood. If you need our legal services, contact Cohn Lifland today.
In some unfortunate cases, a business cannot pay its debts to creditors, bills mount and the future is uncertain. In these dire financial circumstances, a business owner may consider filing for bankruptcy. When a company cannot satisfy its debts to creditors and believes that the value of the business is greater than the sum of its assets, it can use Chapter 11 bankruptcy to reorganize its operations in hopes of increasing net cash flow. The business stays open, employees get to keep their jobs and, if successful, a business can emerge as a profitable entity.