Dayton Chapter 11 Bankruptcy Explained
Since the change in bankruptcy laws in 2005, small business owners are unclear about options available to them when facing financial distress. Business bankruptcy in Dayton is no simple matter, but an experienced attorney who understands the challenges your business faces in this economy might be able to help preserve your enterprise in time for the coming recovery.
As a law firm working with all aspects of Dayton business bankruptcy law (legally, we are defined as a debt relief agency), we often find ourselves answering three important questions:
- What is Chapter 11 bankruptcy in Dayton? When a normally viable business is facing hard economic times, chapter 11 in Dayton allows a business to continue operating while working out payment plans with creditors.
- How might business in insurmountable debt benefit from Chapter 11? If the debt is truly insurmountable, you might consider a Chapter 7 or Chapter 13 bankruptcy filing instead. But when you begin negotiations with creditors under the rules of a Dayton Chapter 11 bankruptcy, you might find that the debt can be managed after all.
- How can a lawyer help? Your bankruptcy attorney is a guide to the legal proceedings necessary to protect your assets so you can keep your business operating. A Dayton Chapter 11 law firm may also be able to handle some of the negotiations for you.
As you might surmise from the second question above, a Chapter 13 bankruptcy filing is for times when it no longer makes sense to continue operating a business. Sometimes this is advisable in a B2B bankruptcy in Dayton.
But if you have a business impacted by the crunch of the recession, or any temporary factor that time might help you overcome, then a Chapter 11 bankruptcy filing might be the best course to take. Dayton B2B bankruptcy filings under Chapter 11 allow you to stop the clock, in a sense, take inventory of your business strengths and shore up relationships with vendors, customers and employees. In fact, you can enroll them in your recovery so that they may benefit when you pay off your debts. This is sometimes referred as a Dayton business work out strategy. However, this strategy does not apply to liquidation bankruptcy (chapters 7 or 13).
The lawyers at Thompson and DeVeny Co., L.P.A. provide practical, cost-effective legal representation. To set up an appointment with any of our attorneys you can call us at 1-888-339-7682. For more detailed information about our attorneys, visit the Our Attorneys page, or contact us online. We have over 100 years combined experience in the legal profession.