Debt Protection | Ganje Law Office

Corporate Bankruptcy Is NOT the Only Solution for Your Struggling Business: Explore Bankruptcy Alternatives to Satisfy Your Corporate Debts

October 7th, 2009 |

Author: alexp

Mounting business debts and harassing creditors may make you feel like filing for bankruptcy, but bankruptcy is not your only option! With the guidance and negotiations of a skilled bankruptcy attorney, there are myriad viable alternatives to business bankruptcy. When your company is in financial distress, don’t assume bankruptcy is the right solution. Your business may be able to satisfy your business debts without filing for bankruptcy!Non-judicial bankruptcy solutions focus on working with your creditors to resolve your business debts. Financial restructuring, turnarounds, and workouts are all potential options for settling your company’s debts. Including options for renegotiating and reorganizing debt, workouts can help your business continue operation and regain liquidity without bankruptcy protection. Turnarounds also use debt restructuring and focus additionally on organizational restructuring to streamline and redesign operational aspects of the business. This can help resolve the underlying issues that led to the initial financial problems and insolvency.

The first question most business owners ask about workouts and restructuring is why will my creditors want to renegotiate debt? The simple answer is that bankruptcy often means creditors see little-to-no repayment of their debts. That means, in most cases, your creditors actually want to help your company avoid bankruptcy. Instead of being unenthusiastic about a workout, creditors will likely be eager to pursue debt restructuring. They know it’s the best option for having part or all of their debt repaid, and they’ll work with you to develop a successful financial workout.

When considering filing for bankruptcy, remember that bankruptcy is almost always more invasive than a workout. On top of being less expensive, non-judicial solutions like workouts and turnarounds have the option of being more private. Bankruptcy protection involves and astounding number of financial disclosures, schedules of assets and liabilities, and in-depth reports, exposing all your financial records to the courts and ultimately, the public.

Keep in mind that every corporate bankruptcy situation is different, so you should consult an experienced bankruptcy lawyer for advice. He or she can guide you through the options available for your specific business and help you decide on appropriate course of action. In these chaotic economic times, remember that your business is not alone: a bankruptcy attorney can help! Call your local bankruptcy prevention specialist today.