Many Kentucky business owners make tough decisions that affect shareholders, operations, income statements and payroll. Recent worldwide events have adversely impacted small businesses and corporations in multiple industries.
For instance, if a meatpacking plant closes, small businesses like restaurant owners and companies like fast food chains that depend on these plants to process their products will also be impacted.
Chapter 11 bankruptcy law is a restructuring plan that allows business owners to reorganize their business affairs, debts and assets. Debtors get a new start and can maintain all or part ownership of their business.
You can file Chapter 11 and still own your business
The Chapter 11 code under bankruptcy law is not an attempt to destroy businesses. Despite misconceptions, it does not take large chunks of your hard-earned assets and divide them amongst your creditors. Instead, it’s a strategic plan to ensure the best outcome for your business and your creditors. It’s not a quick fix and it can take a few months or longer to reach complete debt reconciliation.
Obtaining counsel from a wise, experienced Chapter 11 negotiator will help you analyze your position and help you choose the best options for your business and your employees. Your bankruptcy attorney is your strongest ally. Your attorney should have a proven track record and be:
• A problem solver who understands your business
• A strong arbitrator with a proven track record of Chapter 11 success cases
• An understanding negotiator who understands financial hardship in business and the stressors
• Someone who will form a strategic partnership with you and keep you informed
• An attorney who firmly builds your confidence, works to reduce your stress and respects your privacy
Your attorney should help restore your dignity and assure you that a positive outcome is achievable. There’s a simple reason why: in bankruptcy law, the officials involved usually act in good faith because it benefits both the business owner and the creditors.
In the case of financial hardship, reorganizing your business can lift a huge weight off your shoulders and adds reassurance to your employees, creditors and your family. It lets the important people know that you’re a responsible and credible business owner. Contacting an attorney to help you with bankruptcy law can help you navigate the process.