When your business becomes overwhelmed with limited receivables and enormous debt filing for bankruptcy should be your last resort. Bankruptcy will have crippling effects on your current credit rating as well as impact your ability to obtain business credit in the future, therefore, have a more severe and long-lasting effect on the growth of your business.
While filing for bankruptcy may seem like the best option it is much more difficult for a company to survive after filing. In the past when a struggling small business wanted to restructure its debt, its the only option was to file for Bankruptcy Protection (Chapter 11) which is the commercial bankruptcy code. In the past, it is noted that filing for Chapter 11 protection has had a more devastating effect on the survival of many businesses. Statistically, over 60% of businesses that have filed for bankruptcy have failed.
As an alternative to bankruptcy, Financial Crisis Management/Commercial Debt Restructure is a better option to employ that will allow your business the best way to get out of debt, keep creditors satisfied, and continue to run your business. Goldman & Wise can structure a plan that will help you.
In addition, we will eliminate harassing phone calls, creditor collection letters, and the risk of pending lawsuits.
The most important step is to address your challenges early so that we may address your issues and implement a financial strategy that will allow you to stay in business.
When a company has more debt than it has income, it can find itself in an overwhelming situation, and could even face bankruptcy. When that happens, many other problems can arise. Performing some business debt restructuring is a better solution than bankruptcy. In business debt restructuring, a company’s debts are assessed, then the best way to pay creditors while keeping the business functioning is found. Business debt restructuring involves reorganizing overdue accounts so creditors can be paid strategically without having to shut down the company or file for bankruptcy.
Business debt restructuring is one of the best ways to avoid bankruptcy. When a business files for bankruptcy, it is not necessarily the end of its problems. Filing for Chapter 11 these days is a precarious event because of the 2005 laws which are geared towards forcing businesses to meet their financial obligations rather than offering legal protection.
The business owner then has to face court proceedings that make it harder for businesses to get back on their feet again. Utilizing business debt restructuring can prevent a court-appointed attorney from taking over the business, and examining its books. A business debt restructuring process is friendlier to businesses who have found themselves in a delinquent debt situation. Business debt restructuring can alleviate financial distress.
American Finasco has just the right people who can help with business debt restructuring.