Filing for bankruptcy is a difficult decision that no business owner wants to make. However, when a company is struggling financially and has no other viable options, filing for Chapter 11 bankruptcy can provide numerous benefits.
Here are some of the advantages of filing for Chapter 11 bankruptcy:
Stay in Business:
One of the biggest benefits of filing for Chapter 11 bankruptcy is that the business can continue to operate while it reorganizes its debts and finances. This means that employees can keep their jobs, and the company can continue to provide goods and services to its customers.
Chapter 11 bankruptcy allows a business to restructure its debt and negotiate more favorable payment terms with creditors. This can help reduce the total amount of debt owed by the business, making it easier to manage and pay off.
Filing for Chapter 11 bankruptcy can help protect a business’s assets from being seized by creditors. This gives the business time to reorganize and get back on its feet without losing everything.
Control over the Reorganization Process:
Chapter 11 bankruptcy gives the business control over the reorganization process. The business can work with its creditors to develop a reorganization plan that is in the best interests of all parties involved.
Once the business has successfully completed the Chapter 11 bankruptcy process, it will have a fresh start and improved credit. This can make it easier for the business to obtain loans and credit in the future.
Reduce Legal Liability:
Chapter 11 bankruptcy can help reduce a business’s legal liability. By filing for bankruptcy, the business can discharge certain debts, which can help reduce the risk of lawsuits and legal action.
If you are thinking about filing chapter 11 bankruptcy in Denver, Colorado Springs, Fort Collins, Boulder, Loveland, or any nearby areas call us today at (303) 623-4357 to schedule a free case evaluation.