Chapter 11 Dos and Don’ts for West Palm Beach Businesses
Owning and operating your own business has its perks – you get to be your own boss, and do what you love. However, doing what you love comes at a cost and many small businesses can’t survive. According to the U.S. Small Business Administration, approximately 45 to 51% of small businesses survive five years or longer, which results in some of these businesses filing for Chapter 11 bankruptcy. This article will discuss some of the do’s and don’ts when it comes to bankruptcy for West Palm Beach businesses.
What is Chapter 11 Business Bankruptcy?
Chapter 11 bankruptcy is a lengthy court process that gives a business the opportunity to reorganize its debts to survive instead of starting over.
There are some changes on the horizon that will go into effect on February 19, 2020, due to the Small Business Reorganization Act, also known as House Bill 3311 (HB 3311).
Chapter 11 Bankruptcy Dos and Don’ts
- Do be Clear With Your Creditors. For instance, Chapter 11 bankruptcy requires businesses to file a disclosure statement with the court. This statement helps to provide information about the business’s financial health and allows the creditors to decide whether to accept or reject the request for reorganization.
- Don’t Wait too Long to File. If the expenses have consistently turned out to be more than the business’s income, action should be taken to create a plan of action to reorganize the business’s debts and keep it afloat.
- Do Explore All Options. Every business is unique. Sometimes filing Chapter 11 is not the best option for your business. Explore all of your options to discover whether Chapter 11 is right for your business. Sometimes, an out of court non-bankruptcy workout can help you reach your goals instead of a bankruptcy.
- Don’t File Alone. Understandably, your business is in a financial crisis, but you should avoid filing chapter 11 bankruptcy alone. If you file alone, you risk paying more money to clean up what was done wrong down the road instead of using the money towards expert advice from a knowledgeable West Palm Beach Chapter 11 Bankruptcy attorney from the beginning.
Always Seek Advice from an Experienced Chapter 11 Bankruptcy Attorney
Understanding the ins and outs of a Chapter 11 bankruptcy can be a tough mountain to climb for someone who has no knowledge of the process.
When you’re stressed about the financial status of your company and whether it can survive, the rules alone can be a chore to figure out. This is why you should obtain the assistance of an experienced Chapter 11 bankruptcy attorney.
When You Need Help Filing Chapter 11 Bankruptcy, Contact Our West Palm Beach Chapter 11 Bankruptcy Attorneys
If your business is in a financial crisis and you feel you need to file Chapter 11 bankruptcy for your business, contact the West Palm Beach Chapter 11 bankruptcy attorneys at Kelley Kaplan & Eller at 561-264-6850 for a consultation. We will help you decide which route you should take. We will also be right by your side when you want to save your business and restructure your assets so you can continue living your dream as a business owner.
Resource:
sba.gov/sites/default/files/advocacy/Frequently-Asked-Questions-Small-Business-2018.pdf
