Just as individuals can have difficulty with their debt, businesses can as well. When that’s the case, it is important that a business gets the debt under control so they can get out of the red and move back into the black. If they stay in debt, then they run the risk of going out of business.
Fortunately, there are options available for businesses, including the ability to file business bankruptcy, which is frequently referred to as Chapter 11. Many businesses have restructured their debt and paid back creditors under court approved payment plans, allowing them to remain in business and move forward toward making a profit.
If your business is in debt and you want to keep it in business, bankruptcy or another option may be right for you. Your Minneapolis business bankruptcy lawyer can discuss your business debt relief options so that you can stay afloat even when times are tough.
Protecting Your Business Rights
As a business owner, you have rights and you need to exercise them. When determining how to resolve business debt, it is important that you know about your options. The first option is to aggressively go after money that is owed to you so you can turn it around and pay the debt that you owe.
The second option is to work out the debts. It should be noted that there are few ways to work out business debt. Of course, there is always the option of not paying the debt in hopes it will go away, but this typically leads to litigation that can become even more costly. Some negotiation can keep this from happening.
Effective Negotiation Skills
There are times where a business debt attorney is able to negotiate a lump sum payment that will settle the debt. If a creditor says that they need money right now and the debtor says they cannot pay the entire amount owed, it is possible to negotiate the total amount to something less so that the creditor receives money now and the debtor is able to be relieved of the debt.
However, successful negotiation depends on the circumstances. There are other times where a payment can be divided in thirds so that it is completely eliminated. When this type of agreement is made, it is best to speak with your attorney and to ensure there is a full legal release in place so that the creditor doesn’t come back later and state that any money is owed.
If none of these options will work, then your Minnesota business bankruptcy lawyer can help you with the bankruptcy process. You can file bankruptcy and still remain in business. The difference is that any payment agreements are done through the court so that creditors are paid back and you are relieved of the debt in a way that you can afford.
Minnesota Business Bankruptcy Attorney
If your business is looking at a great deal of debt, there may be a solution to help move your business away from debt and more toward profitability. To learn more about how the McKinney Law Office can help you, call the Minneapolis office at 612-206-3706 or the St. Paul office at 651-379-4110 for a free consultation.
This law firm is a debt relief agency, and we help people file for bankruptcy relief under the United States Bankruptcy Law.