Reno Small Business Bankruptcy Help
Just as individuals and families can find themselves in financial trouble that they cannot get out of without help, so too can small businesses find themselves weighed down under debt and unable to function successfully. At Darby Law Practice, we help consumers as well as small businesses find their way out from under that weight and on the road to financial freedom and success, often with the help of the protections provided by bankruptcy for small businesses.
It is easy for a small business to be turned off by the mention of a bankruptcy. Be it outdated stigmas, successful bank propaganda, or a misplaced equating of bankruptcy with failure, bankruptcy is usually the last option considered by a small business. While bankruptcy may rightfully be a last option, it often also provides the best option. Chapter 11 allows small businesses to shrink monthly debt obligations. Equipment loans can be rewritten, including a reduction of the principal balance down to the current fair market value of the collateral. This can be very helpful for real estate loans, equipment loans and automobile loans. Total debt can be reduced, monthly payments can be lowered, and interest rates can be dropped with the help of a bankruptcy lawyer.
Chapter 11 also gives a business the ability to terminate leases and contracts and limit, or cap, the resulting legal damages. Whether it’s a bad commercial lease or an onerous supply contract, Chapter 11 can be used to get out of those contracts and allow the business to take advantage of current rental or supply rates. If a business has fallen behind on tax obligations, Chapter 11 can provide for a structured repayment that avoids further penalties and may also halt further interest. The benefits to a business of a planned Chapter 11 bankruptcy are numerous.
Help for Reno Small Businesses
Chapter 11 gives small businesses breathing room and a break from constant creditor harassment. Freed from this pressure, the business owners can concentrate on taking the steps necessary to turn their business around to solvency, profitably, and long-term success. For legal and financial help with your Reno small business, contact Darby Law Practice for a free consultation.