No one gets married thinking of the possibility of divorce, and no one starts a business thinking about how to deal with the hardest of times. But debt can drive people and organizations to extreme measures, and some desperate managers can turn to debt consolidation and other risky methods to try and get out from under it.
Bankruptcy can feel like the end, but it is designed to be an opportunity to start over with a clean slate as an individual or a business. A liquidation bankruptcy, often called Chapter 7, requires people to dispense with most assets and properties in an attempt to square as many debts as possible. A reorganization, known as Chapter 11, allows businesses to retain the resources they need to rebuild.
A new Hampshire manufacturer recently ended their Chapter 11 bankruptcy a little over a year after it originally filed the plan with the U.S. Bankruptcy Court in Concord. Financial trouble began for the company when its largest supplier moved from nearby Massachusetts to Tennessee.
People and businesses interested in keeping a manufacturer in the Granite State offered loans to get the company back on its feet. One particular loan, combined with the cold weather that elicits interest in their blankets and outdoor gear, helped revive the business without the loss of a single employee.
People or businesses considering Chapter 11 bankruptcy to move out of debt may consider an attorney to help them with the creation and submission of a plan. A lawyer can help formulate the right way to enter into bankruptcy with the goal of emerging from it as quickly as possible.