Whenever you hear about bankruptcy, the two main options you generally hear discussed are Chapter 7 and Chapter 13. However, lesser-used solutions such as Chapter 11 exist, so how do you know which option is best for you? If your business is seeking for a way to continue operations, then you can cross Chapter 7 off your list, as that would shut your organization’s doors. And while Chapter 13 is an incredible option to reorganize debts so that your business can move forward, there’s a ceiling to how much debt you can have. Thus, if your business has too much debt to file for Chapter 13 with the help of a Cincinnati bankruptcy lawyer, then Chapter 11 may be for you!
Understanding the Benefits of Chapter 11
The biggest benefit of Chapter 11 is that your business can continue operations while paying off debts at a noticeably more manageable rate. Furthermore, because your business has worked with a bankruptcy lawyer, creditors won’t be able to continue harassing your office about unpaid bills. Since phone calls from lenders can be overbearing, having your phone lines cleared of creditors thanks to Chapter 11 will improve all workflow processes.
However, it’s important to know that after Chapter 11, the bankruptcy court will suddenly have power over some of your business decisions. In other words, while you can still manage the day-to-day decisions as your organization functions, any decision that requires a large sum of money may be subject to court authority. Of course, working with a bankruptcy lawyer will ensure that your business’s rights will be protected during and after the filing. A bankruptcy lawyer will work to understand the facts unique to your case to ensure that your business reaps the full benefits of Chapter 11.
Furthermore, it’s important to understand that Chapter 11 isn’t just for businesses. Individuals, for instance, can protect investment property through Chapter 11 with the help of a bankruptcy lawyer. Whether you’re a business or individual, the main benefit remains constant: flexibility in repaying debts without having to worry about your most valuable assets.