If your business is struggling with debt, you should speak to a Chapter 11 bankruptcy lawyer Las Vegas, NV residents trust. Your lawyer may advise you to file for Chapter 11 bankruptcy, which involves restructuring your debts to repay your creditors over a certain length of time. Here are some common misconceptions about Chapter 11 bankruptcy that you should know about:
Chapter 11 Bankruptcy Means Going Out of Business
Many people believe that companies that file for bankruptcy automatically go out of business. Fortunately, this is a myth. Many companies that file for Chapter 11 restructure their debts and still stay in business. The process does not involve liquidation of assets.
Chapter 11 Is a Long Process
Some businesses fear filing for Chapter 11 because they assume the process will take years. While it does take a while for some companies to go through the bankruptcy process, it does not always have to be that way. If you want to finish the process as quickly as possible, you can opt for a lightning-fast bankruptcy, which involves negotiating with creditors before filing. It takes much less time than a traditional bankruptcy case and can help you move on faster.
A Bankrupt Company Has Plenty of Money
Another common myth a Chapter 11 bankruptcy lawyer in Las Vegas, NV hears is that bankrupt companies have plenty of money because they don’t have to pay their creditors anymore. That could not be further from the truth. Chapter 11 requires companies to pay back their debts. In addition to paying the costs associated with bankruptcy, businesses have to have enough cash to operate every day. Therefore, many businesses going through bankruptcy don’t have a lot of cash flow and often have to cut some of their expenses.
Chapter 11 Bankruptcy Will Make Customers Leave
Another fear some companies have about filing for Chapter 11 is that all their customers won’t come back anymore. They may think their customers will not trust their business anymore and go elsewhere. However, most customers will never know if a company filed for Chapter 11. They will still continue to purchase your products and services regardless if you filed for bankruptcy or not.
Consulting With a Bankruptcy Lawyer
If you have made the decision to file for Chapter 11, your next step is to schedule a consultation with a Las Vegas bankruptcy lawyer. He or she can assess your company’s debts and finances and determine if Chapter 11 is the appropriate option or not. Filing for bankruptcy can be overwhelming, so it is helpful to have someone with knowledge and experience on your side.
If your business is in massive debt, contact a Chapter 11 bankruptcy lawyer in Las Vegas, NV at the Ballstaedt Law Firm today.