Is your business suffering financially? Do you owe creditors and face increased overhead? Are you questioning whether you can survive through these challenges? Before you consider shuttering the doors, look at alternative options such as bankruptcy options. This legal procedure could allow for your organization to restructure and emerge stronger. The following are three ways the declaration could help operations.
1. You Could Restructure Overlead
When you work with attorneys who specialize in business bankruptcy Columbia MD, they not only begin proceedings, but they assist with ending current contracts and starting new negotiations. While bonuses and wage increases certainly help employees and sound good, they can drain your finances. During bankruptcy, consider discussing changing these contracts to more reasonable and affordable fees. It’s usually better to offer a bit less and save jobs than to say goodbye ultimately.
2. Suspend and Reduce Debt
If you’ve overextended your credit, filing Chapter 11 could help offset that amount. The proceedings halt current debt payment. Instead, your legal team works with your debtors to show them new plans to pay off under the new structure. Lenders can forgive some of that cost so that they get back as much as possible.
3. Give You Time To Think and Breathe
Are the walls closing in? Those bills mount and can create a great deal of stress and fear. During bankruptcy, those bills stop, giving you breathing room. Use that time to work with your board to brainstorm effective ways to maximize profit and decrease your overhead expenses. This break allows your leadership team a lifeline for creativity and resuscitation.
While bankruptcy often carries a negative connotation, the process doesn’t deem your company a failure. Instead, the system is in place to aid your hard work, giving you one last chance to reach success. Use this opportunity to fix what went wrong.