Business bankruptcy, Chapter 11 bankruptcy, may not be your first choice, but it is an option. Business owners facing heavy debt in Florida and the nation’s financial crisis often find bankruptcy is a good option. A plan can be implemented to save the company, help the owner get out of debt, satisfy debtors, and provide consumers with ongoing service.
Bankruptcy lawyers Eric Lanigan and Roddy Lanigan have showed clients that Chapter 7 bankruptcy or Chapter 11 bankruptcy can be a win-win solution for some small businesses.
Many times businesses turn first to professional credit counseling service to provide financial plans to meet debtor needs. But consulting with the Lanigans will allow owners to benefit from the experience of attorneys with 35 years of business litigation experience.
Small businesses comprise about 22 million of the companies in America and account for close to two-thirds of the employees hired in the country. There are approximately 40,000 bankruptcies that occur each year making it apparent that there should be workable alternatives to this tragic occurrence.
Eric and Roddy Lanigan can help a struggling business owner by explaining bankruptcy options for businesses and help devise a plan that is workable within the available financial means that his or her business has.
The Lanigans work with business owners to help decide what to do with high debt. Before a bankruptcy is considered business finances are reviewed and the options discussed.
Sometimes, the Lanigans are able to negotiate debt for as little as a few cents on the dollar. Even though lenders may not receive the full debt owed them, they are satisfied with what they agree upon because bankruptcy would only cause them to lose all their investment instead of part.
The Lanigans can create a plan to get out of debt as well as satisfy lenders so that a business doesn’t have to file bankruptcy–if the problems are handled before they get out of control. The Lanigan can allow a business to continue to make a profit and grow.
Business May Need Restructuring
Business owners have seen hard times throughout the life of their company, but know that planning is key in developing a financial future. The Lanigans can provide the direction and execution for a plan to survive financial hardships when business bankruptcy seems like the last option.
Many times small companies are not in deep debt and can get out of debt for as little $15,000 to $20,000.
For the business owner who is crushed with credit card debt with creditors and vendors calling for checks, personal debts, employee paychecks and lease agreements, filing as bankrupt may seem to be the only way out. Sometimes it is.
Don’t Let Pride Ruin Business
Most small businesses are the result of personal dreams of someone and are considerably harder to let go of even in the face of mounting debt. That’s why some owners hang on to their dream as long as they can before declaring business bankruptcy. For some business owners, just staying above water is too stressful for all concerned and filing for bankruptcy is a welcome relief.
The financial entanglement can be very difficult to handle afterwards. Credit is damaged and a lifetime of assets end up liquidated to pay back to creditors who are even then not fully paid off.
Here’s the litmus test: If a business has not been able to develop a financial plan to pay off creditors and place them in good standing within three to four years, they probably should consider shutting down and getting another line of business.
A small business bankruptcy stays on a credit history for seven to 10 years. It’s worth the effort to explore as many options as possible with Winter Park bankruptcy lawyers Eric Lanigan and Roddy Lanigan before filing business bankruptcy.
