This spring, Congress reintroduced a bill that would provide small businesses with greater opportunities to benefit from Chapter 11 bankruptcy. The Small Business Reorganization Act (SBRA), if passed, will add a Subchapter V to the United States Bankruptcy Code. New provisions propose giving businesses with less than $2,566,050 in liabilities a more streamlined method of debt relief.
Too many people think of bankruptcy as the end of the road for a small business – but it doesn’t have to be. Filing for Chapter 11 reorganization bankruptcy allows you to restructure business debt, satisfy creditors and get your company back on track. If all goes well, the business survives and even comes out stronger than before.
We’re only into the second quarter of 2019 and it seems clear that this could be the year of the chain-retail-store bankruptcy. According to market analysts, retailers in the U.S. have reported the planned closure of nearly 6,000 stores.
Chapter 11 bankruptcy can prove beneficial to businesses, individuals and the community. Without the ability to file a Chapter 11 bankruptcy, owners may not be able to sell their business, employees may lose their jobs, and contractual obligations may remain unfulfilled.
When you invest money in a business, it is probably because you hope you will receive a return. Many times, it is exciting to help a company grow, expand or develop a new product.
Among the challenges that arise for entrepreneurs when getting a business started is securing the funding their new company needs. There are various options business owners have for addressing this issue. Among the main ones is debt financing.