estate planning to relieve the family of stress

5 Ways A Bankruptcy Lawyer Can Save Your Struggling Business

It is a tricky and trying time when your business is struggling with debt. But with the right help, you still have the opportunity to get through these tough times. A bankruptcy lawyer is very helpful when your business becomes insolvent. These legal professionals can help you avoid a total asset loss, giving your business a chance to get back on its feet. Your lawyer will help you file for Chapter 11 bankruptcy, which prevents a complete winding down. How does your lawyer save your business with this arrangement?

Keep Your Business Going During the Bankruptcy

A bankruptcy lawyer can help you file for Chapter 11 bankruptcy to keep your business operational. This type of bankruptcy gives businesses an opportunity to reorganize their finances and continue to operate while they repay their debts.

Businesses do not have to surrender vital assets as a part of Chapter 11. The court will often allow you to use your business income to repay creditors. It helps you retain your brand and customer base, so you don't have to start from scratch again.

Get a Stay on all Creditor Actions

One of the immediate benefits of declaring bankruptcy is a stay on creditor actions. This means that your creditors cannot take any action against you, including garnishing your wages, seizing your assets, or making harassing phone calls.

This stay enjoins all debt-recovery actions, including foreclosures, repossessions, liens, lawsuits, and levies. Your bankruptcy lawyer will help you draft a plan to make your repayments, without undue pressure, and send it to the bankruptcy court. 

Get Emergency Relief For Normal Operations

When your bankruptcy attorney files for Chapter 11 bankruptcy, you keep normal operations going. This includes paying wages and benefits to employees, filing and paying taxes, and meeting certain contractual obligations. It gives confidence to your employees, customers, and vendors.

Get Relief From Unexpired Leases and Executory Contracts

Contractual obligations can weigh heavily on a struggling business. When your lawyer files for bankruptcy, you get more flexibility in meeting these obligations. You can choose the obligations to meet and those to ignore. It enables you to discard obligations that are bleeding money. You can retain contracts that will continue being beneficial after you recover.

Dispose of Business Assets Without Debt Attachments 

Your lawyer can apply for the court's permission to dispose of some assets without liens and interests. It helps you fetch better prices for these assets and put this money to more productive uses for faster recovery. 

Are you looking for debt distress relief for your business? Then, book an appointment with a bankruptcy lawyer to discuss options in saving your hard-earned assets.