Bankruptcy is a scary word and it should be.
It’s difficult for a variety of reasons. Chapter 11 in particular requires a viable underlying business, the cooperation of creditors, and the willingness to make some difficult decisions to keep the business going.
Generally, business owners see bankruptcy as a sign of failure. They fear losing both the financial equity and the “sweat equity” they’ve put into this business – something that, in many cases, they’ve poured all their heart and soul into.
For this reason, most small business owners contact a bankruptcy attorney too late. But Chapter 11 is not the death of the business. Quite the opposite. It gives the small business owner with a viable business the opportunity to restructure debts, learn from past mistakes, and come out a leaner, more efficient, and more effective business.
In short, bankruptcy can give you a real opportunity to succeed moving forward.