No business owner ever wants to face the prospect of insolvency, but sometimes it's unavoidable. If your business is struggling to stay afloat, you may be considering bankruptcy as a way to get out from under the weight of your debts. But before you make any decisions, it's important to understand that bankruptcy is not necessarily the end of your business. In fact, with the help of a bankruptcy attorney, you may be able to keep your business going for longer than you thought possible. Here are ways a bankruptcy attorney can help you keep your insolvent business afloat:
1. They Can Help You Negotiate With Creditors
The biggest threat when facing insolvency is asset seizure by your creditors. It is a very likely possibility if you don't show a credible payment plan. You will face heavy pressure from creditors demanding their payment.
A bankruptcy attorney can help you negotiate with creditors and come up with a plan to repay your debts. In some cases, the attorney may even be able to get the creditors to agree to a reduced repayment schedule.
2. They Can Help You Restructure Your Debt
If negotiation with creditors doesn't work, your next best option is to file for bankruptcy. This will give you some relief from your debts and allow you to restructure your finances.
Debt restructuring involves coming up with a new repayment plan that is more affordable and manageable. A bankruptcy attorney can help you develop a debt restructuring plan that will give you a better chance of succeeding in repaying your debts.
3. They Can Shield You Against Adversarial Actions
When you're facing insolvency, your creditors may take adversarial actions against you, including the seizure of your business assets. One of the priority actions is obtaining a stay that will prohibit creditors from taking any action against you. This will give you some breathing room to reorganize your business and come up with a plan to repay your debts.
4. They Can Help You Explore Other Options Besides Bankruptcy
Bankruptcy should always be a last resort when facing insolvency. Other options may be more suitable for your situation. For example, you may be able to sell off some assets or negotiate a payment plan with your creditors outside of bankruptcy court. A bankruptcy attorney can help you explore all of your options and choose the one that is best for your business.
You've worked to build your business and you shouldn't let it go without a fight. This involves obtaining legal guidance and assistance as you work to find the best solution for your unique situation. Consult a bankruptcy attorney to explore practical ways to give your business a new lease of life.Share