What will happen if I file a Chapter 11 Bankruptcy reorganization?
If you’re considering filing for chapter 11, the first thing you need to understand is this doesn’t mean that your business is over. It doesn’t mean you should be embarrassed. It doesn’t mean that you did anything wrong.
It may feel that way and anyone who has filed or is considering filing chapter 11 bankruptcy knows the stress and the sleepless nights.
Take a deep breath and lets go through this thoughtfully.
With thorough consideration and preparation, filing for Chapter 11 can bring business & property owners significant benefits. It can improve cashflow, eliminate balloon payments on loans, stop banks from threatening to shut down your business, eliminate problems and allow the owners to keep their business or property.
GFCIB, along with your attorney, can help business owners with how to structure their bankruptcy to give them the best chance of success.
If you’re not sure if you should be filing for chapter 11, ask yourself the following:
- Is there not enough monthly cash flow to make your payments?
- Are sales down significantly?
- Do you have any balloon payments on any loans coming up in the next few months?
- Did any of your lenders declare you in default?
- Are you putting off buying necessary equipment or doing necessary repairs because lack of cash?
- For real estate holding companies, is there too much vacancy?
- Are tenants not paying on time?
- Are you lacking the funds to fix up vacant units for new tenants?
If you can answer “yes” to any of these questions, consult with GFCIB today. You may be able to work through your situation without filing for Chapter 11, but it’s important that you know your options and that you gain an advocate to protect your business & investments.