Is Chapter 11 With Business Bankruptcy Attorneys the End of the Road for Business Restructuring?

There are company leaders asking the question right now: should they wait on Chapter 11, go with Chapter 13, or hold out for another year? Chapter 11 is often seen as the end of the road for businesses before they decide to fundamentally change the debt structures of their companies. There is some truth to this overall effort. Business Bankruptcy Attorneys will help the company towards a complete overhaul and restructuring that may likely change the faces and the dynamics of the company.

But, does it deserve to be seen as the end of the road? Is it not just another strategy in a long list of strategies? Donald Trump has famously said that he used bankruptcy law as it is dictated by the United States, and he did not break any rules that were not already hardwired in as law. Companies are not only bound by the law, they can be freed by it. The best companies use that law to their advantage to grow and prosper, while sometimes, they use it just to survive.

Business Bankruptcy Attorneys see many companies that not survive a bankruptcy while others flourish a few years down the road after a chapter 11. The difference almost always depends on timing. There is a point where the damage is done. The business is essentially beyond repair, barring a miracle in the business world.

A chapter 11 bankruptcy with the help of reorganizes the contents of debt. Traditionally, a debtor possesses any remaining company assets. The debtor (it can be a team, but is usually one individual) maintains control of the company but the debtor has an overseeing board of members populated by the court appointees. The debtor can make major decisions within the firm, but they have to pass through the authority of the courts. The debtor is officially declared in probation and major decisions must be reviewed.

Companies do not often survive a chapter 11. The reason is that it does not fundamentally change the business by design. The leaders still need to take action to recover, and the debt is still present. The business does not just change. The leaders must enforce change, and make drastic changes to accommodate the fledgling business.