PRACTICE OVERVIEW
Protect and Rebuild Your Business
Financial challenges to small businesses can sometimes lead to tough decisions. Filing for bankruptcy in South Alabama might be considered a last resort, but it is also a strategic step to regain financial stability.
Understanding the various bankruptcy options available is crucial for small business owners contemplating this serious step. A skilled South Alabama bankruptcy attorney can guide you through this daunting process, ensuring you make informed decisions that align with your business’s long-term objectives.
Bankruptcy Options for Small Businesses in South Alabama
Bankruptcy provides a lifeline for businesses overwhelmed by debt, allowing them to restructure or eliminate their financial obligations.
In South Alabama, small businesses have three bankruptcy options available:
- Chapter 7 Bankruptcy: Chapter 7 is suitable for businesses that do not foresee a profitable future and wish to cease operations. The process involves liquidating assets to repay creditors. It can swiftly discharge unsecured debts, providing a clean slate.
- Chapter 11 Subchapter V Bankruptcy: This reorganization bankruptcy is ideal for small businesses (best with LLCs and partnerships) aiming to continue operations while restructuring their debts. Chapter 11 offers a flexible framework to renegotiate terms with creditors and vendors, possibly lowering debt obligations and extending repayment terms. It is a complex procedure but provides a valuable opportunity for strategic financial reorganization.
- Chapter 13 Bankruptcy: Typically used by sole proprietors, Chapter 13 allows small business owners to keep their operations running while repaying debts through a court-approved repayment plan. This option is particularly viable for businesses with a steady income, enabling owners to fulfill their obligations over three to five years.
If your business is facing financial difficulties, consult our South Alabama bankruptcy lawyers at Hollinger Connor, LLC. Based on your business’s specific circumstances and financial goals, our South Alabama bankruptcy attorney can recommend the most beneficial form of bankruptcy for your business. Contact us today to explore your options and craft a strategic approach to overcoming your financial challenges.