Filing for bankruptcy in Tennessee doesn’t have to mean the end of your business. In fact, filing for bankruptcy could actually help you eliminate debts and make your business profitable again. You could buy yourself some time to get your finances in order and figure out how to save a struggling business.
How can filing for bankruptcy help your business?
Under bankruptcy law, your debt payments will temporarily stop when you file for Chapter 11. This can give you some time to reorganize your finances and figure out how to pay off your debts without being harassed by creditors. In many cases, filing for Chapter 11 involves negotiating with creditors and getting them to accept a smaller percentage of what they’re due. You’ll be able to pay off your debts and start looking toward the future again.
During your Chapter 11 proceedings, you’ll get the chance to pause and save up some money while you negotiate with your creditors. Filing for Chapter 11 also gives you the chance to renegotiate your contracts with vendors and suppliers. Most vendors would rather work out a deal that allows you to continue buying their supplies. Since you’re providing them with income, they want to see your business succeed almost as much as you do. If you feel that you’ve been paying too much for supplies, Chapter 11 gives you the opportunity to end your contracts and rewrite new ones that suit your company’s needs.
How can you successfully file for Chapter 11?
Filing for bankruptcy can help your business get back on its feet, but it could also cause more financial issues if you don’t follow the right procedure. An attorney may walk you through the process and help you get everything right the first time. An experienced legal professional may help your business make the most out of the bankruptcy proceedings.