Chapter 11 Bankruptcy in Saint Petersburg

Chapter 11 bankruptcy enables businesses to reorganize. Although it is available to individuals as well, it is almost exclusively used by businesses to reorganize their debts and proceed with operations.

Business Bankruptcy in Saint Petersburg

Many clients who file for Chapter 11 bankruptcy have successful businesses but from time to time experience cash flow problems. Others have had profitable businesses in the past, but are on the edge of collapse because of a poor business decision, legal problems, or a financial oversight. And some clients have had businesses that just did not work out and must be reorganized in order to go forward.

Regardless of your situation, Cox & Sanchez bankruptcy attorneys can help you file a Saint Petersburg Chapter 11 bankruptcy to get your business back on the track to success. Some of the benefits to a Chapter 11 bankruptcy include the following:

Unlike a Chapter 7 bankruptcy, it does not entail the  business ceasing to operate It saves jobs and may preserve value It puts the company’s debts on hold Some debts may even be canceled

It provides management leverage with creditors The company can continue operating during the restructuring process

The basic idea of a Chapter 11 Saint Petersburg business bankruptcy is to enable struggling businesses to continue operating while canceling some of their debts and transferring some or all of the newly organized company to the creditors whose debts were cancelled. If the company is allowed to reorganize, jobs and assets can be saved and overall losses on all sides can be reduced.

Drawbacks to Chapter 11

Unfortunately, there are some drawbacks to a Chapter 11—also known as a B2B—bankruptcy. In a Saint Petersburg B2B bankruptcy, the stockholders’ shares in a company usually lose their value. The company may also be led by new ownership, and employees may have certain contracts voided and/or their salaries and benefits reduced.

Contact us

Because of the complexity of a Chapter 11 bankruptcy, it is important you have an experienced Saint Petersburg bankruptcy law firm on your side. At Cox & Sanchez, we understand the hardships these difficult times can present, and we work diligently and efficiently on your behalf to help you make informed decisions that are in the best interest of you and your business.

For a free phone consultation about your legal needs, contact The Law Office of Cox & Sanchez by calling 1-727-869-2691 today.