Business Bankruptcy: Chapter 11

Things do not always go as planned in business today.  Sometimes your business ends up with a black cloud of credit problems that hangs over your head.  That is when you should call me.  I’m Sherry House-Percival of Percival Law Offices in Jackson, TN.   If your business is in financial trouble, my firm can help determine if Chapter 11 business bankruptcy in Jackson is best in your situation.

Chapter 11 is a reorganization proceeding that gives corporations and partnerships a chance to reorganize debts while continuing to operate and retain assets.  In Jackson Chapter 11, your business can reduce debt by repaying only some of your obligations, discharge debts, end unprofitable leases or contracts, recover assets, pay creditors with future profits, and more to restructure the business for greater profitability.

Chapter 11 bankruptcy in Jackson can be an effective tool to save your business.  To determine if it is the right solution for your business, there are a number of factors to consider.

Is your business a corporation, partnership or self-proprietorship?

Corporations, limited liability companies and partnerships are legal entities that can file Chapter 7 or Chapter 11 B2B bankruptcy on their own.  Proprietorships, however, are extensions of their owner and do not actually hold assets or liabilities.  Proprietorships cannot file bankruptcy unless you as the owner files for Chapter 7, Chapter 11 or Chapter 13 bankruptcy.

Should your business be reorganized or liquidated?

Reorganization can be helpful in freeing up cash, ending unprofitable contracts, or preventing vital assets from being taken by creditors.  But it cannot create a market or increase gross revenue.  You should consider the nature of your problems to determine if Chapter 11 in Jackson can help.

Is it worth the time and effort to reorganize the business?

Creating a viable reorganization plan in compliance with a Jackson Chapter 11 bankruptcy is time-intensive.  Before you go down that path, you should consider if your business is one that warrants reorganization.  Businesses that require little capital, have few assets or are extensions of your skills are ones that it may not pay to reorganize.

To seriously consider filing bankruptcy in Jackson under Chapter 11, you need to answer these and many more questions.  I have the experience to help you through it.  Contact my firm, Percival Law Offices, at 731-506-4902 to make an appointment to discuss the specifics of your circumstances.