Plenty of companies have been in the news in recent years because they have filed for bankruptcy. Blockbuster, Claire's and Sears are just a few of the major businesses that have found themselves seeking debt relief in the face of a changing economy. Retailers are not the only businesses that need debt relief, though—perhaps you own a business, retail or not, and are wondering how to handle mounting debts.
There are a number of ways to address this problem, but you should not rule out Chapter 13 bankruptcy. This option offers several benefits to business owners seeking to retain their company and continue operations while working on repaying debts that have accumulated.
Mitigate personal loss
Most business owners put forth a sum of their own capital to fund expenses. If you are not making enough profit, or if your debts are simply too high, you may find yourself in a position where this is increasingly necessary. Filing for bankruptcy allows you to put a halt to all these expenses and stop your own pockets from leaking your personal funds.
Get time to reorganize
If you elect to file for Chapter 13, you will be given the opportunity to reorganize your debts and establish payment plans. For many businesses, this is a great way to continue operating while buying time so that debts can be managed. Reorganizing your debts allows your business to construct payment plans to work and alleviate the burden you were dealing with previously.
Just as you will be able to restructure your payments, you will be able to renegotiate contracts when you file for bankruptcy. This can be a great opportunity to negotiate terms that are more favorable and make it easier to manage your company's debts. All these benefits make bankruptcy in Minnesota a beneficial option for many businesses.