What is Bankruptcy?
Bankruptcy is a legal status of a company or individual who is unable to pay their debts. Usually when filing for a personal bankruptcy an individual will file for a Chapter 7 bankruptcy, or an Chapter 13 bankruptcy.. A company would most likely file a Chapter 11 which is used to reorganize the debt, but in some cases this chapter can also be filed for personal reasons.
Under a chapter 11 bankruptcy the company is put under a plan to pay down debt while also keeping their business doors open and profitable. Small businesses often have a hard time filing this chapter because they can almost never afford the legal fees that come with filing. Bankruptcy in any case comes with many fees and upfront costs. In the case of a small company unable to pay the fees, the company could then file a Chapter 7. Generally with this type of filing, assets are sold to pay back debts which can mean the company can no longer run. Before filing, a company must also go through credit counseling to see if it is possible to restructure before filing. All of these actions involve fees, time and money. Bankruptcy also severely diminishes any credit a company can obtain for several years moving forward. This can make buying equipment necessary for running your business very trying.
It is always best to try to avoid filing for any kind of bankruptcy. At Cain and Daniels we will negotiate your debts and make reasonable payments plans to get your credit back where it needs to be as well as protecting your assets and keeping the doors to your business open. At Cain and Daniels, your business is our business and we keep you in business. Out mission is to get your debt plan going as quickly and efficiently as possible. In some cases we may have answers within one business day. The sooner you get started the sooner you will be back on track and less stressed because of looming debt. On our home screen click the “Get Started” button and let us get your financial obligations back in order and avoid bankruptcy.