Unmanageable debts lead countless American businesses to struggle financially. In the currently unstable economy, many business owners are having trouble just paying the interest on the loans and other debts that the company has incurred. Restructuring the terms of a company’s various debts can be tremendously helpful and might allow a business to remain a going concern while still holding a favorable status with its creditors.
Advantages and Disadvantages of Debt Restructuring
Many businesses choose to restructure their debt in order to avoid bankruptcy. By finding a way to make payments, they can help to maintain a positive reputation and to remain in good standing with creditors. This may involve negotiating different due dates, payment amounts, interest rates, or other terms. However, if debt restructuring fails, a company may experience severe financial hardships that may cause the business to close. If debt restructuring does not seem like a viable option, then bankruptcy should be considered. It is important to remember that businesses can stay open during bankruptcy. Emerging from Chapter 11 bankruptcy can return you on a path to success.
If your business’s debts have become out of control, it is important to speak with an attorney about your options. The Milwaukee bankruptcy attorneys at the DeLadurantey Law Office, LLC, can help you to identify an appropriate course of action to resolve your current situation. Our compassionate and experienced attorneys are well-versed in the pertinent bankruptcy laws and can help to relieve some of your financial stress. Contact us today at 414-377-0518 to schedule a free consultation.