It is no secret that businesses are not cheap to run. There are numerous costs involved when it comes to running a business, ranging from the cost of hiring and maintaining employees to the cost of marketing and advertising. In fact, many people will take out loans to start their businesses, hoping that the profits from the business will pay back that loan. However, after a business has grown past a certain extent, the costs might begin to outweigh the profits. When a business begins to struggle in this way, it might choose to take out a loan to help support itself. In some cases, this is not enough and the business plunges into bankruptcy. When this happens, many business owners will file for a Chapter 11 bankruptcy.
What Is Chapter 11 Bankruptcy?
As the lawyer will explain to you, Chapter 11 bankruptcy in Albany, OR is designed to help larger businesses reorganize themselves when they are struggling for money. Chapter 11 bankruptcies are the type that you sometimes see in the news when a large business begins to collapse. Some business owners might worry that the entire business will have to be shut down when it becomes bankrupt. Thankfully, this is usually not the case. Instead, when a business files for Chapter 11 bankruptcy, the bankruptcy court will have control over most of the major decisions. While it may not be particularly enjoyable, this can allow the business to continue functioning for its customers, creditors, and shareholders.
Why Seek a Lawyer?
Unlike other chapters of bankruptcy, the financial reorganization of Chapter 11 is more complex than many people would think. This is where the help of a lawyer can come in handy. Lawyers who specialize in handling Chapter 11 bankruptcy will be able to guide you along in understanding each part of the reorganization plan and what you will have to do. They can explain parts that you do not understand and give you advice on the best course of action to take. For more information on what a lawyer can do for Chapter 11 bankruptcy, click here to learn more.
