If you are facing financial challenges as a business owner, know that you are not alone. Across the country, many businesses have had to close their doors in recent months. If you have high levels of debt and you are unsure of what to do about this problem, you need to explore all of your options. For some business owners, filing for bankruptcy is a solution to their financial crisis.
Many business owners turn to Chapter 11 bankruptcy to find debt relief. It is helpful to review statistics on Chapter 11 in order to realize how prevalent this option is.
Are Chapter 11 bankruptcy filings increasing?
The United States Courts reports that in 2020, Chapter 11 bankruptcy filings increased by 18.7% in comparison to 2019. During 2020, 7,786 Chapter 11 bankruptcy filings involved business reorganization, out of 8,333 Chapter 11 bankruptcies in total. In fact, other types of bankruptcy, such as Chapter 13 and Chapter 7, actually decreased in 2020 when compared to 2019.
During 2020, more than 21,000 businesses filed for bankruptcy.
How could Chapter 11 benefit your business?
If you are on the fence about filing for Chapter 11 bankruptcy, it is important to review the potential benefits associated with taking this course of action. Aside from addressing debt, this strategy could allow you to keep your business open and provide a sense of mental relief.
With so much at stake, you need to figure out the approach that best suits your needs. Make sure you go over the ins and outs of the Chapter 11 bankruptcy process closely.