Many Florida businesses struggle financially and if you’re among them, you may be worried about the future of your company. Fortunately, a Chapter 11 bankruptcy may provide you with financial relief without necessarily forcing you to close the doors of your business. Avoid these Chapter 11 bankruptcy mistakes and give your business the chance to succeed.
Don’t Leave Out Any Debts
A big mistake that many small business owners make is forgetting to include all of their debts in the bankruptcy forms. Your creditors will be able to form a restructuring plan, but can only do so by evaluating the debts you’ve included in your bankruptcy petition. If you leave any debts out, they won’t be included in the plan and may leave you without the protection on those debts that a Chapter 11 bankruptcy can provide for you.
Waiting To File
Often, the thought of filing for bankruptcy for your business is intimidating. This can lead people to put off filing for bankruptcy, but waiting can cause even more problems down the line. Debts and interest can accrue while you are waiting, and you’ll be subjected to collection activities until you file. Your best bet is to file for a Chapter 11 bankruptcy as soon as you learn that filing for bankruptcy is the best solution for your individual situation.
Not Being Realistic
Even though a Chapter 11 bankruptcy is designed to allow businesses to restructure and essentially “trade” their way out of debt, some businesses are still forced to close their doors. Understand that while this is not your goal, it is still a possibility. Be realistic about the outcome of your bankruptcy and hope for the best while simultaneously preparing for any bumps in the road that may come along.
Failing To Hire A Business Bankruptcy Attorney
While many people believe that they can file for bankruptcy on their own, it is nearly impossible to do when you’re filing a Chapter 11 bankruptcy for your business. If you neglect to hire a bankruptcy lawyer from the start, you may find that there are mistakes on your bankruptcy form that could be costly. Your attorney can help you negotiate with creditors for the best outcome possible, no matter what your circumstances.
Joel Aresty, P.A. is an experienced business bankruptcy lawyer who can help you understand how bankruptcy laws can affect you and what steps to take to get out of debt while keeping your business running. He will work with you to achieve the ultimate goal of business success. Call now for a consultation at 1-855 DOC LAWS.