The small business bankruptcy attorneys at Dennery law understand that operating a small business poses financial challenges that in some cases warrant reorganizing under chapter 11 of bankruptcy code. A cash flow crisis will impact an operator\u2019s ability to maintain inventory, motivate key employees or market your goods or services. Razor-thin margins quickly turn into operating losses unless debts and current liabilities are reorganized. Add to that the breach of a key contract, tax levies or seizures, or the suspension of crucial operating license, and the resources that you depend on to build your brand and services are now completely depleted.<\/p>\n\n\n\n
A Chapter 11 small business bankruptcy gives you the time and the flexibility to recover from a downturn in sales, an interruption in business, or a cash flow crisis. Filing a small business chapter 11 is the right decision where the ownership has the ability to turn around by reorganizing business debts, tweaking revenue models, and adjusting operational expenses. Chapter 11 also provides a mechanism to sell a small business as a going concern, free and clear of certain liabilities, which allows for a maximum recovery to the creditors thereby reducing any personal liability of the individual owners.\u00a0<\/p>\n\n\n\n