FOR IMMEDIATE RELEASE
Greenbelt Bankruptcy Lawyer Reveals Alternative Options for Struggling Businesses Through Real-Life Anecdotes
Greenbelt, MD – May 7, 2023 – Attorney Jill Phillips of the Phillips Law Offices in Greenbelt, Maryland, has recently published a timely and informative blog article, “Potential Alternatives To Chapter 7 Bankruptcy For Business”, shedding light on the possible avenues business owners can take to avoid filing for Chapter 7 business bankruptcy.
The Alternatives to Chapter 7 Bankruptcy
The article, written by a bankruptcy lawyer in Greenbelt, highlights three potential alternatives to Chapter 7 bankruptcy, supported by actual experiences from Attorney Phillips' practice, showcasing how each alternative can benefit Maryland businesses:
- Chapter 11 Bankruptcy: In one instance, Attorney Phillips helped a local retail store facing overwhelming debt restructure its financial obligations through Chapter 11 bankruptcy. By negotiating better terms with creditors and reorganizing the business, the store was able to continue operations, preserve jobs, and eventually regain profitability. This option allows businesses to restructure their debts and continue operations while repaying creditors over time. Unlike Chapter 7, Chapter 11 is more suitable for businesses with a viable chance of recovery and a desire to continue doing business in Maryland. However, it should be noted that this is a much more complex legal process with greater court oversight.
- Debt Negotiation: Attorney Phillips shared the story of a small construction company that faced financial difficulties due to several unpaid invoices. By working closely with the business owner, she successfully negotiated with creditors to reduce the amount of debt owed, extend repayment terms, and settle the debt for a lump sum payment. This option is more feasible for businesses with fewer creditors or those that can afford to make partial payments. Debt negotiation is also a significant component of any Chapter 11 case.
- Business Sale or Merger: In another case, a struggling family-owned restaurant approached Attorney Phillips for advice. By helping them find a suitable buyer, she facilitated the sale of the business, allowing it to continue operating under new ownership. The previous owner used the proceeds from the sale to pay off personal debts and even negotiated a consulting position with the new owner to ensure a smooth transition. This approach can potentially allow the business to continue operating under new ownership or management while the previous owner can use the proceeds from the sale to pay off personal debts.
Attorney Jill Phillips, Managing Member of the Phillips Law Offices, LLC, shares her insights on the importance of considering alternative options to Chapter 7 bankruptcy, saying, "When business owners come to us seeking help with their financial troubles, our goal is to find the most suitable solution for their unique situation. In many cases, exploring alternatives such as Chapter 11 bankruptcy, debt negotiation, or a business sale or merger can result in a more favorable outcome for both the business and its owners. For example, in a recent debt negotiation case, a company in College in Maryland was able to reduce its debt by almost 60%, allowing them to continue operations and get back on track financially. Business owners must seek professional advice and carefully consider all available options before making any major decisions."
Rebuilding After Bankruptcy or Sale
The Greenbelt bankruptcy attorney also provides valuable tips for business owners looking to rebuild their financial lives after completing the Chapter 7 bankruptcy process or selling their business:
- Learn from Past Mistakes: Analyze the root causes of your business's financial troubles and learn from those mistakes to avoid repeating them in the future.
- Develop a Strong Financial Plan: Create a solid financial plan for your future, including a realistic budget, savings goals, and strategies for managing debt responsibly.
- Reestablish Credit: Start rebuilding your credit after bankruptcy by obtaining a secured credit card, making timely payments, and keeping your credit utilization low.
- Seek Professional Advice: Consult with financial advisors, accountants, and other professionals who can provide guidance and support as you work to rebuild your financial life after bankruptcy.
Take the Right Steps to Secure Your Financial Future
Maryland business owners facing insurmountable debt must explore all options and work with an experienced Greenbelt bankruptcy lawyer to ensure that they make the best decision for their unique circumstances. By carefully considering your options and taking proactive steps, you can overcome financial setbacks and create a more stable financial future for your company and yourself.
For more information, please visit the Phillips Law Offices, a Greenbelt bankruptcy and debt relief law firm
About Phillips Law Offices
Phillips Law Offices, located in Greenbelt, Maryland, offers comprehensive legal services for clients dealing with bankruptcy, business, and other legal matters. Attorney Jill Phillips has years of experience helping businesses and individuals navigate the complexities of bankruptcy and debt, guiding them toward the best possible outcome. With a focus on personalized attention, Phillips Law Offices is committed to finding tailored solutions for each client's unique financial situation.
