Did you know you could get your small business out of debt without filing chapter 11 bankruptcy?
If you’re a business owner who is…
…searching for an affordable way to get your business out of debt without filing bankruptcy… or
…tired of dealing with the phone calls from creditors, collection agencies or attorneys…
Then our program might be just what you need. Now you can have a team of highly specialized, trained and qualified professionals to help you overcome the severe financial challenges you’re facing.
Our program is designed to help businesses satisfy their overwhelming debt obligations despite their limited and unpredictable cash flow. We do this by negotiating settlement terms with your creditors that fit within a budget you can realistically afford monthly. You can refer creditors, collectors and attorneys to us so you can get back to work.
Business owners rarely consider chapter 11 business bankruptcy unless there are serious pressures. If you’ve fallen behind with creditors and your cash flow is tight, you may be considering debt consolidation or even bankruptcy.
Contact us so we can hopefully find an affordable solution that works for you.
Are You Considering Chapter 11 Business Bankruptcy?
Chapter 11 business bankruptcy, which is also referred to as reorganization, may be something you’ve considered as a solution to your overwhelming debt obligations. While Chapter 11 may make sense for some small businesses, it can be a time-consuming legal process that you should research thoroughly.
In some cases, bankruptcy laws and procedures can be daunting for small businesses working with limited resources. Here’s a list of potential challenges that are present in some Chapter 11 bankruptcy cases:
- It can be a complex process: Using the wrong lawyer or financial advisor may cause the process to present more problems than it solves. Many Chapter 11 cases have complications because companies hire the wrong professionals for their specific situation.
- It can be expensive for a small business: You may start by paying $1,000 as a court filing fee and then some bankruptcy lawyers charge by the hour. A Chapter 11 petition can cost as much as $50,000 or more in fees. How many financially struggling small business owners can afford that kind of cash outlay in these difficult times?
- Chapter 11 can be time consuming: Oftentimes it takes several secured and unsecured creditor meetings and court proceedings for the process to start. By the time this happens, it’s possible for things to change, which may skew the original reorganization plan. Small businesses trying to work themselves out of debt may not have the time necessary for a Chapter 11 to be successful.
- Many corporations and firms are passionate about their business, yet may not be realistic about what it takes to successfully run it in the midst of a bankruptcy. They may see the reorganization benefits of a Chapter 11 as a quick remedy for their situation. But not every situation can be resolved through a Chapter 11 reorganization.
- Many business owners spend considerable time, money and effort in creating elaborate information and reorganization plans, which aren’t guaranteed to be accepted by the creditors. This can send the whole process back to square one. Can a distressed small business owner, who is a debtor to their creditors, afford such time and cost?
- Reorganization under Chapter 11 is a precise process that can take years to complete. Deviations from the approved plan can cause problems for the whole bankruptcy process and present the business owner with further complications, possibly even putting his or her personal assets at risk.
Plus, Chapter 11 bankruptcy can give some control to the court trustee and leave the business owner with limited business flexibility at a time when it is needed the most. Recent laws like Bankruptcy Abuse and Prevention and Consumer Protection Act have also made it difficult for businesses to completely write off their debt.
To sum up, Chapter 11 is a process that should be considered very carefully. We have posted several examples of possible challenges on our blog here. If your company is struggling with debt and you’re seeking a solution, then you should consider all of your options.
Have You Considered Business Debt Consolidation?
Debt consolidation is a process for business owners who want help managing their debt load. Consider a business that owes multiple creditors, each with different due dates, interest rates, repayment periods and other terms. Instead of juggling all of the payments to these creditors, debt consolidation lumps all of these payments into a single loan, sometimes at a reduced rate of interest or extended time period for repayment.
There may be additional fees involved in acquiring a consolidation loan. This can be a one-time or an ongoing fee. While lawyers or financial advisors may not be required, it is suggested that the business seek professional guidance or counseling in making this decision.
If you are currently receiving collection calls or legal notices from creditors that are being lumped into the consolidation loan, then these collection efforts may be reduced. However, if your credit has been significantly impaired due to delinquencies on existing debts, acquiring a debt consolidation loan may be challenging. The terms and conditions of any financing may be contingent on your credit rating.
While debt consolidation may not reduce your debt in and of itself, if the terms of the new loan are more favorable than your existing debts, it may help you work your way out of your situation more efficiently. But debt consolidation loans aren’t always possible for small businesses with severely impaired credit. What option is available besides Chapter 11 bankruptcy or business debt consolidation?
Consider Our Business Debt Restructuring Program!
Debt restructuring is the process of negotiating new payment terms with existing creditors. The purpose is to satisfy your creditors based on a budget you can realistically afford, without filing bankruptcy or taking on more loans. Restructuring includes reducing the amount owed and/or stretching out the time period for making payments to creditors. Keep in mind this is not a debt consolidation loan, it does not involve court proceedings and we don’t even have to check your credit.
Here are some warning signs that you may need business debt restructuring:
- You’re having trouble paying current bills as well as past due debts.
- You’re putting off debts that you had planned to pay.
- You’ve already negotiated new payment terms with creditors, but can’t afford them.
- You’re paying smaller creditors first while ducking larger creditors that potentially pose a bigger threat to your company.
- You’re being contacted by a collection agency or are being sued.
- You’re bouncing checks.
- At least 30% of your payables are over 90 days old.
First, we try to understand your situation, how much your business owes and who your debts are owed to. Then we work with you to establish a budget that you can afford on a monthly basis. Once a budget is established, our negotiators will seek to negotiate new settlement terms with your creditors. During the restructuring process, you can refer calls from creditors, collection agencies and attorneys to us.
We have over 14 years of experience in business debt management solutions and have helped thousands of businesses to get out of debt. Now you can have a team of experts all focused on settling debt within your limited budget. Our program is designed to get your business out of debt without a debt consolidation loan or filing bankruptcy.
Want an Alternative to Bankruptcy? Contact Us!
If you are overwhelmed by debt and want an alternative to debt consolidation or business bankruptcy, don’t hesitate to get in touch with us. We will work with you to devise a practical and suitable solution.
Please call us toll-free at 866.876.5938 or fill out the form above. The consultation is cost free, completely confidential and there is no obligation to use our services.