Issues with debt are stressful enough on a personal level, but when you own a business, it can be overwhelming. Luckily, you have options when it comes to filing bankruptcy that can allow you to handle your debt and not lose your business.
Chapter 13 bankruptcy is well worth considering. This bankruptcy option allows you to restructure your debts while keeping your business operational, a key advantage over other bankruptcy chapters.
Retain control of the business
One of the primary benefits of Chapter 13 for business owners is the ability to retain control of your business operations. Other bankruptcy options may require selling off business assets to repay debts. Chapter 13 relies on a manageable repayment plan to repay debts. This enables you to continue running your business.
Prevent repossession
When you file, the court puts an automatic stay in place. This stops all creditor actions, including the repossession of business assets. The stay provides valuable breathing room to reorganize your finances and protect your business assets.
Prioritize debts
The repayment plan allows you to prioritize certain debts, such as past-due payments on business loans. This can help reduce the total amount you need to repay or give you more time to pay. The flexibility can be significant when you need to stabilize your finances, giving you much-needed breathing room.
Chapter 13 bankruptcy offers business owners a structured path to manage debt. It is a helping hand that can take you from the brink of losing everything to getting back on your feet to create a bright future for your company.
