How Bankruptcy Can Help Small Family Businesses Survive

Many small business and family business owners worry about the prospect of bankruptcy when their business is struggling financially, in part because of common misconceptions about business bankruptcy. Much too often, small business and family owners assume that filing for bankruptcy will mean having to close their business, or that the bankruptcy process is likely to be so complicated or expensive that it simply makes more sense to dissolve the business than to consider bankruptcy. However, our West Palm Beach bankruptcy lawyers want to be clear that these are common misconceptions, and there are various ways in which bankruptcy options can help small family businesses to survive and, ultimately, to thrive. Consider the following information, and get in touch with an advocate at Kelley, Kaplan & Eller when you are ready to file.

You Can Keep Your Business Open 

There are a number of business bankruptcy options that allow businesses to remain open while they are going through a bankruptcy case. These types of bankruptcies are known as “reorganization” bankruptcies, and they are designed for businesses to reorganize debts over a period of time, which we will explain below. In any reorganization bankruptcy, your business does not need to close, and it does not need to liquidate assets or take any related steps.

You Can Restructure Debts 

With a reorganization bankruptcy, you can restructure or reorganize debts over time. In so doing, you can catch up on payments with various creditors, and your business can be eligible to have certain debts discharged at the end of the repayment period. The way this works is like this: your business will develop a repayment plan and will make regular payments over a period of time to creditors. Once the terms of the repayment plan are completed, a discharge of remaining debts may be possible, and the idea is that your business can move forward in a manner that is financially sound.

You Can Get Bankruptcy Protection Without Extensive Complications 

There are many types of reorganization bankruptcies that small family businesses may be eligible for including Subchapter V, Chapter 12, and even Chapter 13 if your business is a sole proprietorship. Your bankruptcy lawyer can discuss your eligibility with you. And even if your business needs to consider a traditional Chapter 11 filing (a type of reorganization bankruptcy that tends to be more complicated than the others listed here), our firm will assist you throughout the process so that your business can survive and thrive.

Contact a West Palm Beach Bankruptcy Lawyer Today 

Coming to the realization that your business is seriously struggling financially can be difficult, but it is critical to know that bankruptcy can be a way to help your family business remain open to continue serving customers. There are many misconceptions about business bankruptcy, and it is important to know that not all business bankruptcies require closure and liquidation of business assets, or extremely complicated and expensive proceedings. If you want to learn more, an experienced West Palm Beach bankruptcy attorney at Kelley, Kaplan & Eller can speak with you today. Contact us for more information about the services we provide to individuals and businesses in bankruptcy cases.

Source:

law.cornell.edu/uscode/text/11