Businesses may accumulate debt for any number of reasons: an economic downturn, decline in revenue, health problems of the owner of the business, an adverse legal judgment and more. Regardless of the reason, business owners can find debt relief in bankruptcy.
Debt And Business Decline
Many businesses have been hit hard by the recent economic downturn. Many business owners made the assumption that things would turn around and business would go back to normal. In the meantime, they kept accumulating business debt, often through the use of business credit cards and on-line loans. Contractors, for example, have experienced a drought in work because of the decrease in new construction. These businesses often use equipment that is expensive to purchase and maintain, but necessary to remain competitive. These two factors have led to major debt problems within this industry. Thankfully, these and other business debt problems can be resolved through bankruptcy.
Has The Value Of Your Business Declined Since Its Purchase?
Another issue facing many businesses that were purchased in better economic times is that the value of the business and its assets has dropped dramatically yet its debts still reflect the original purchase price. In these cases, Chapter 11 can effectively be used to reduce the business’ debts to match the fair market value of the assets securing the debts thereby making the debt load much more manageable. Balbus Law recently represented a medical practice that was able to reduce its debt load by several hundred thousand dollars in Chapter 11.
To Learn About Your Options For Business Debt Relief In Bankruptcy, Contact Us For a Free Initial Consultation
Balbus Law Firm helps businesses overcome unmanageable debt through the use of all types of bankruptcy, not just Chapter 11. Chapter 11 is appropriate in some cases, but for many businesses, Chapter 7 or Chapter 13 may make more sense.
To learn about business debt and bankruptcy in a free initial consultation, call 203-286-4121 or email us.
Balbus Law Firm is a debt relief agency. We help people and businesses in New York and Connecticut file for bankruptcy relief under the Bankruptcy Code.