Businesses are sometimes overwhelmed by their debts to a point that the owner may be declared bankrupt but there is some protection they are entitled to in such situations. As a business owner you can hire a Knoxville Chapter 11 attorney to petition the bankruptcy court for the chance to reorganize the debts. If you were to do this then you would be sure to enjoy the various benefits that it brings to your business.
The first benefit would be the automatic stay that you will get against all the suits and collections that are targeted towards your business. This will enable you to get reprieve from the pressure that your creditors were exerting on you as they tried to recover their money. This will help you build on your reorganization.
It will also present you with a new negotiation opportunity with all your creditors in a view to restructuring the debts owed and find a reasonable repayment plan. It will enable you to get a favorable repayment plan and interest rates on your loans. You can even negotiate on a percentage of the total loans to be paid first before the rest.
Your attorney will enable you to be able to keep your business as a going concern by filing a petition under chapter 11. You will be able to retain your business, reputation and all the relationships you have created with your customers. This will help you not to have to start afresh all over again after you handle all your debts.
Your lawyer will also assist you to be able to defer the financial obligations that you ought to pay regularly to a time that you will be comfortable to pay them. This includes the business rent that you can have deferred to a future date. This will give you some space to raise sufficient money to pay the creditors.
Getting legal representation will also help your business recover some things that had been taken away involuntarily by creditors before as they tried to get you settle their debts. Once the petition filed by your lawyer is successful then the provisions under Chapter 11 will enable you to recover things like repossessions, liens, bank levies and wage garnishments. The legal expert will help you enjoy the protection that is envisaged by the laws governing bankruptcy.
It will also be beneficial to your business as it will bring the possibility of curing the accelerated obligations arising from your defaults. Once you default on some of your legal obligations like mortgages, your lenders will be forced to accelerate the obligation. The lawyer will help you return this to its pre-default instead of having to pay the remaining amount at once.
The first benefit would be the automatic stay that you will get against all the suits and collections that are targeted towards your business. This will enable you to get reprieve from the pressure that your creditors were exerting on you as they tried to recover their money. This will help you build on your reorganization.
It will also present you with a new negotiation opportunity with all your creditors in a view to restructuring the debts owed and find a reasonable repayment plan. It will enable you to get a favorable repayment plan and interest rates on your loans. You can even negotiate on a percentage of the total loans to be paid first before the rest.
Your attorney will enable you to be able to keep your business as a going concern by filing a petition under chapter 11. You will be able to retain your business, reputation and all the relationships you have created with your customers. This will help you not to have to start afresh all over again after you handle all your debts.
Your lawyer will also assist you to be able to defer the financial obligations that you ought to pay regularly to a time that you will be comfortable to pay them. This includes the business rent that you can have deferred to a future date. This will give you some space to raise sufficient money to pay the creditors.
Getting legal representation will also help your business recover some things that had been taken away involuntarily by creditors before as they tried to get you settle their debts. Once the petition filed by your lawyer is successful then the provisions under Chapter 11 will enable you to recover things like repossessions, liens, bank levies and wage garnishments. The legal expert will help you enjoy the protection that is envisaged by the laws governing bankruptcy.
It will also be beneficial to your business as it will bring the possibility of curing the accelerated obligations arising from your defaults. Once you default on some of your legal obligations like mortgages, your lenders will be forced to accelerate the obligation. The lawyer will help you return this to its pre-default instead of having to pay the remaining amount at once.
About the Author:
Cameron S. Schippers is a retired paralegal that helped individuals through the process of filing for bankruptcy for 15 years. He has a deep understanding of the Bankruptcy code. To learn more about Johnson City Chapter 13 Law he suggests you click here for more information.
No comments:
Post a Comment