If you’ve searched the web for business turnaround, bankruptcy, receivership and insolvency information to help your company, but you can’t find anything helpful and your lawyers don’t have all the answer, we recommend that you get free commercial debt consolidation advice to restructure your company’s business debts.
Federal bankruptcy laws govern how companies go out of business or recover from crippling debt. A bankrupt company, the “debtor,” might use Chapter 11 of the Bankruptcy Code to “reorganize” its business and try to become profitable again. Management continues to run the day-to-day business operations but all significant business decisions must be approved by a bankruptcy court. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.
Under Chapter 7, the company stops all operations and goes completely out of business. A trustee is appointed to “liquidate” (sell) the company’s assets and the money is used to pay off the debt, which may include debts to creditors and investors.
In the commercial debt counseling program, you are in control. Your assets such as inventory, bank accounts, and equipment are protected from day one. You decide how much you can afford on a monthly basis to put toward your creditors instead of a court-appointed trustee. Creditors are prioritized and critical suppliers are kept providing the materials that you need to keep your doors open and payments and reductions are negotiated with the others.