When financial troubles hit, it can sometimes prove immensely difficult to get back on track quickly. Unfortunately, the longer the problems persist, the more likely it is that business owners will not be able to address their outstanding debts on their own. Before throwing in the towel, however, Louisiana business owners may want to consider Chapter 11 bankruptcy.
This type of bankruptcy is immensely complex, but when needed, it could also prove helpful for struggling businesses. An approved petition for Chapter 11 could allow the debts and other liabilities of a business to be restructured and addressed over the course of a few months to two years. During this time, the company can continue operating, but it may need court approval before certain actions can be taken, such as selling certain assets or expanding operations.
When it comes to the restructuring of debts, the business has the opportunity to propose a plan to the court that details the intentions for handling the obligations. There are different courses of action that such plans could involve. Some companies may choose to downsize in hopes of lowering operational costs, and other businesses may decide to liquidate assets in efforts to pay creditors.
Choosing to move forward with Chapter 11 bankruptcy is a major decision. This type of bankruptcy is also one of the most complex to complete. However, it has helped many struggling businesses address their outstanding debts. If Louisiana business owners feel that this avenue could best suit their needs, they may wish to discuss this option with knowledgeable bankruptcy attorneys.