If you’re a struggling business owner who is struggling to get ahead of debts, you might be considering Chapter 11 as a last resort. An experienced Vigo County business bankruptcy attorney can help.
When you want to avoid closing your doors because you haven’t been able to keep up with a mountain of creditors and debts, Chapter 11 can be a great way to give yourself a clean slate and repay your debts while keeping your business open.
The Vigo County business bankruptcy lawyers at Rowdy G. Williams Law Firm understand how easy it can be to fall behind on your bills and other various debts you’ve incurred. We are prepared to help you declare bankruptcy, should it become necessary.
Declaring Chapter 11
When you think of declaring bankruptcy, you’re likely thinking of Chapter 7, where all of your debts and assets are liquidated and sold to repay your creditors. But, you might not know that this isn’t the only bankruptcy option you have—particularly as a business owner who wants to stay open.
Business owners will typically look into Chapter 11 bankruptcy when they’re interested in clearing their financial name. In a Chapter 11 declaration, you can keep your business open while repaying your creditors over a period of time.
Your attorney can work with you to formulate a repayment plan that lists each of your creditors, the amount you owe, and your plan for paying them back. Most Chapter 11 repayment plans span over a period of three to five years, which can give you plenty of time to reorganize your debts.
However, there are some crucial pieces of information you need to know before you decide to move forward with Chapter 11 bankruptcy. First, your creditors have the option of contesting your repayment plan, at which point it might need to be adjusted to meet their needs.
You’ll also need to have your reorganization plan developed within 120 days of declaring Chapter 11 or risk having your bankruptcy case dismissed. Your lawyer will make sure you meet all of the necessary deadlines so you can return to the path toward financial freedom.
Discharging Your Debts
Once you’ve submitted a repayment plan and had it approved by your creditors and the judge, it becomes a binding contract to which you are obligated to follow. You will be expected to make your payments as laid out in your reorganization plan for your debts to be discharged.
Once you’ve met the terms of your repayment plan, your creditors will no longer be able to continue collection efforts, and your debts will be considered discharged.
In the event that you are unable to meet the terms laid out in your repayment plan, you might need to request a hardship discharge. Keep in mind that a hardship discharge is not only rare, but for one to be approved, the creditor will need to have already obtained as much repayment as they would have if you had to file for Chapter 7 bankruptcy.
Contact a Vigo County Business Bankruptcy Attorney
If you’re interested in pursuing a Chapter 11 declaration, you can do so with the assistance of a seasoned Vigo County business bankruptcy lawyer at Rowdy G. Williams Law Firm. Call our office at 1-812-232-7400 or fill out the brief contact form we’ve included at the bottom of this page to schedule your initial case review today.