ClickCease 3 Advantages Of Filing A Chapter 11 Bankruptcy - Legal Facts

If you’re a businessperson who’s on a verge or in the middle of a bankruptcy, your best bet is to file for a Chapter 11 Bankruptcy. Here’s what you’ll get if you do so.

  1. Debtor stays in charge of the company/business.

Business leaders fear losing control over their business (and for good reasons). One of their fears over bankruptcy is losing their control to their business and having their creditor/s take over it. Chapter 11 will ensure you remain as leader of your business.

This is because Chapter 11 is about restructuring your business as you pay your debts. You can’t restructure and pay your debts if you don’t control any of your businesses. Restructuring (or reorganization) can be found more in #3).

  1. The automatic stay prevents creditors from taking action against the debtor.

This doesn’t mean you’ll be kept away forever from your creditors, but you’ll have a fighting chance and defense in case one of them tried to take over your assets. Remember benefit number one: you get to stay in charge of your business/es and assets.

  1. The debtor gets to develop a reorganization plan.

Not only you’re secured to your power and from having your creditors seize your assets, Chapter 11 also gives you the benefit of reorganizing yourself to make plans on how you’ll settle your debts and get out from your bankruptcy.

If you’re under the threat of bankruptcy, it’s best you call a lawyer. From whom will you seek help, anyway? Get a bankruptcy lawyer and have him/her help you today!