Many people have the misconception that filing for bankruptcy means it’s the end of a business. However, that is far from true. Filing for bankruptcy can help a struggling business survive and even grow in time. Depending on your company’s structure, assets, and available income, creating a repayment plan through bankruptcy can make all the difference—especially during the COVID-19 pandemic. Our Fort Lauderdale bankruptcy lawyers explain how bankruptcy can help you keep your business.
Keeping Your Business Through Bankruptcy
If you want to keep your business but you’re struggling to make ends meet, filing for bankruptcy could help you save your company. If you own a profitable company that is facing hard times due to COVID-19, it makes sense to stay operational. An experienced bankruptcy attorney can analyze your situation and help you determine if your business can remain afloat with the help of bankruptcy. Reorganizing debt in bankruptcy might be just what you need to keep your business operating.
Which Type of Bankruptcy Is Right for My Business?
There are various types of bankruptcy Chapters available for businesses. Choosing the right chapter will depend on the structure of your business and the value of its assets. Below we explain the different types of bankruptcy you can apply for:
- Chapter 11 Bankruptcy: Chapter 11 allows business partnerships to reorganize their debt and remain in business. The Small Business Reorganization Act under Chapter 11 helps small businesses take advantage of the benefits Chapter 11 bankruptcy offers.
- Chapter 13 Bankruptcy: If you are a sole proprietor, you can include both personal and business debts in your Chapter 13 bankruptcy, just like you can in a Chapter 7 bankruptcy. You might be able to keep the business going while paying a lesser amount on both personal and business obligations.
If you want to keep your business open but you’re struggling financially due to COVID-19, our Fort Lauderdale bankruptcy attorneys are here to help you. Call us today at (954) 516-2566 to schedule a consultation!