Businesses in Kentucky, whether they are small family-owned enterprises or mega-stores, can find themselves facing serious financial crises, which are often out of their control. The loss of a customer base, a struggling market or an overload of debts can often lead businesses to consider filing for business bankruptcy.
In fact, filing for bankruptcy is sometimes the fiscally responsible thing for a business to do. It provides them with a means to reorganize debt in a way that allows them to eliminate their liabilities. A plan for reorganization can be the key that allows businesses to stay operational, while addressing their debts. In fact, once a business files for Chapter 11 bankruptcy, an automatic stay is issued that prevents creditors from engaging in collection activities.
By filing for Chapter 11 bankruptcy, a business can establish a repayment plan. However, filing for Chapter 11 bankruptcy is a complex process. Businesses contemplating business bankruptcy may want to seek the advice of an attorney. For example, the legal team at Kruger & Schwartz serves businesses throughout Kentucky who are considering a Chapter 11 bankruptcy filing. They are committed to protecting these businesses as they move through the Chapter 11 bankruptcy process.
When a business is struggling financially, filing for bankruptcy is often the best move they can make to keep their doors open, while addressing their debts. But, it is not a road that should be traversed alone. A dedicated bankruptcy attorney can ensure that these businesses meet all the requirements necessary to enter into a Chapter 11 repayment plan, and can help see that the final plan is fair and appropriate.