It probably goes without saying that the health crisis we have witnessed for the past few months is an unprecedented challenge with which businesses need to cope and eventually overcome. With commercial activities slowing down, in Texas and across the world, many business owners are struggling to stay afloat. For many of those business owners, rising debt is a monumental challenge, leading them to consider filing for bankruptcy.
Most entrepreneurs in the Dallas area are aware that business bankruptcy is usually filed under Chapters 7 and 11 of the Bankruptcy Code, which are effective tools to cope with debt that may have arisen during these difficult times. However, bankruptcy may not be the best solution for many businesses that are in debt and, therefore, should only be seen as a last resort. Thus, the question remains: What other ways exist to manage this debt default situation?
An innovative way of handling a situation of this sort is debt restructuring. A business owner may be able to survive a difficult debt situation through various types of loan workouts and financial restructuring. It is an out-of-court process in which the business works with its creditors to create a plan to restructure all debts, Restructuring debt in this manner may help a business owner avoid many costs and consequences that are associated with a bankruptcy filing.
At Kaplan & Cruz, PLLC, we have decades of experience in finding solutions through loan workouts and financial restructuring. We understand that creditors often want businesses to return to profitability so that a greater percentage of their debts may be We leverage that interest and help you negotiate terms paid to rapidly lead you and your business to profitability and liquidity, thereby strengthening both you and the reputation of your business.