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Chapter 11 Bankruptcy in Harrisburg

Are you a small business owner who is having difficulty keeping your business afloat? If the monthly expenses are exceeding the business’s income, you are surely running out of options and need to find a quick solution. Do you close down operations, or do you file Chapter 11 bankruptcy? Let’s not be so fast to call it quits.

As an entrepreneur, we’re confident there’s a lot riding on your business. Perhaps you took out an SBA loan, or you borrowed from your 401(k) to fund your business. Perhaps you bootstrapped your business or borrowed the startup capital from friends or family.

If you took out an SBA loan, you likely used your personal residence as collateral. Regardless of how you funded your venture, getting the business out of financial distress is the top priority. If your small business is having trouble paying its bills, a Chapter 11 may be the ideal solution.

What is a Chapter 11 Bankruptcy?

With a Chapter 11 small business bankruptcy, you may be able to restructure and eliminate business debts, so you can keep the business’s doors open for business. If you established a partnership, corporation, or a limited liability company (LLC), a Chapter 11 is your only option if you wish to keep your business operating. A Chapter 11 is also the only option for individual business debtors whose debts are too high to qualify under Chapter 13’s requirements.

Benefits of a Chapter 11:

  • Allows struggling businesses to stay open
  • The business owner can reorganize its debts
  • Payment obligations can be modified so they are manageable
  • Business obligations can be effectively reduced
  • Struggling businesses can regain their profitability
  • Business debtors can balance their income with their expenses

Is a Chapter 11 small business bankruptcy right for you? To learn how bankruptcy can help small businesses, contact our office to schedule a free consultation with one of our Harrisburg bankruptcy attorneys!

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