If you are a business owner in debt, you may be considering Chapter 11 business bankruptcy. This is a great option because it will allow you to keep your business up and running throughout the process. But, many people see bankruptcy as a last result. Therefore, you may be exploring your other options. One option you may have is business debt restructuring. Read on to learn more about the process of business debt restructuring in New York.
What is Chapter 11 Bankruptcy?
Under Chapter 11 Bankruptcy, a business owner will work with his or her attorney to come up with a Reorganization Plan. With a Reorganization Plan, a business remains open and continues to operate. Any profit generated is used to pay operating expenses first, and then pay off a portion of the debt and eliminate the balance.
What is Business Debt Restructuring?
If you are currently in debt, but your business is still very promising and you believe you can turn it around, business debt restructuring may be a far better alternative than filing for bankruptcy. When you hire an experienced attorney, you can privately renegotiate this delinquent debt and improve your business’s liquidity and profitability.
Do I Really Need a Bankruptcy Attorney?
If you are a business owner, you are definitely a self-starter. Your independence and drive may lead you to attempt to go through this process alone. However, this is not an advisable option. During this time, it is vital that you have knowledgeable legal assistance through these negotiations with your creditors. Keep in mind that although creditors often prefer that you restructure your debt rather than filing for bankruptcy, this is only the case because when you restructure your debt, they have more control over how the restructuring plays out. As a result, it is easy to be taken advantage of. However, with an experienced bankruptcy attorney by your side, you can rest assured that your best interests, and your business, are well-protected, every step of the way.
If you are a business owner struggling with debt, it is easy to feel overwhelmed. Contact our firm to speak with a knowledgeable attorney. Our firm is here to advocate for you. We will walk you through the process every step of the way and help make sure you are back on your feet as soon as possible.
CONTACT A BANKRUPTCY LAWYER TO DISCUSS YOUR DEBT OR COLLECTION ISSUE
Michael D. Pinsky, P.C. represents clients in bankruptcy actions and related matters. Please call 845-394-2616 or contact the firm online to schedule a consultation.