Owning and operating a business can be a complicated and expensive venture. Sometimes, things don’t go as planned and profits aren’t as high as expected. This can cause a Louisiana business owner to fall behind on his or her financial obligations. This can lead to past-due bills and other complications, and it may be necessary to then consider the benefits of filing for Chapter 11 bankruptcy.
The intent of Chapter 11 is to allow a business to continue operating while under bankruptcy protection by reorganizing its debt. It can also modify certain loans and leases. This is an option for a company that is currently struggling to pay its creditors but expects to see financial improvement in the future. The company will have to follow the terms of a bankruptcy plan.
Most Louisiana business owners likely feel reluctant to file for bankruptcy. However, this option can actually save them money by restructuring the debt. It also allows a company to keep the doors open and continue serving customers. This is a major decision, but it is not the end of the road. In many cases, it is a prudent decision that lays the foundation for a stronger future.
It is not easy to make the choice to file for bankruptcy. An assessment of the individual financial situation by an experienced attorney can help an owner decide if Chapter 11 is really the right way forward for the business. A legal ally can also provide assistance throughout the process, ensuring the company meets the terms of the bankruptcy plan.