Debts build up, cash flow changes, economies rise and fall, and uncertainties increase, and entrepreneurs and business owners may need to reevaluate their financial standing accordingly. However, running into financial trouble does not necessarily mean that a company needs to close shop and declare bankruptcy. Restructuring and reorganization strategies developed by an experienced commercial bankruptcy attorney give business owners more flexibility in finding a solution with their creditors rather than declaring bankruptcy.
When a company cannot repay its debts in challenging financial circumstances, the business may be forced to declare bankruptcy. However, different types of bankruptcies exist depending on the business type and specific situation. Working with an experienced Dallas law firm that specializes in helping companies succeed, like Ritter Spencer PLLC, can make it easier to determine which type of bankruptcy a company should file to eliminate existing debt and yield a clearer opportunity for future success. Below we explain the differences between Chapter 11 and Chapter 7 bankruptcy for businesses.
Organizing finances and adapting to evolving economic situations are constant challenges of running a business. Even companies that feel prepared for a change in their financial status may find themselves on the brink of bankruptcy. With the volatility of the global economy and an unpredictable market, businesses should prepare for the worst and work with a bankruptcy attorney to create a financial plan in case of bankruptcy. Work with the Dallas commercial bankruptcy attorneys at Ritter Spencer PLLC to plan for your company’s future.
Many businesses fall victim to a combination of factors that lead to the necessary decision to file for bankruptcy. However, doing so does not necessarily mean the business completely fails. In certain instances, and with the right attorneys from the Dallas law firm of Ritter Spencer PLLC, a company may emerge from bankruptcy with a stronger and clearer path to lucrative and lasting success. Specifically, filing for bankruptcy allows a business to reorganize its affairs, debts, and assets to reallocate and restructure the company to make it possible for a business to bounce back. Below we’ve outlined some of the most notable businesses to bounce back from bankruptcy and continue to see success today.
The sooner your business hires a bankruptcy attorney, the better. Smart business owners realize they need a bankruptcy attorney before the storm clouds appear, rather than after the storm has swept through their business. If you wait until the last minute to look into bankruptcy counsel, it might be too late to save your business and your assets. Learn more about why your business should hire a bankruptcy attorney and how these professionals can help your business in the long-run.