Bowie, Maryland Business Bankruptcy Lawyer

Debt Relief Attorney Helping Companies in Bowie Stay in Business Through Bankruptcy

Staying in business can be tough in today's market. Many companies borrow money, use credit cards, or use trade credit to stay afloat. When the monthly payments become too much to handle, you may wonder if you will be forced to close your doors. Bankruptcy is not only for individuals; businesses can file for debt relief or reorganization too. Depending on your situation, Chapter 11 or Chapter 5 bankruptcy could provide the debt relief you need to put your business in a stronger, more stable position. You need an attorney with experience handling all the intricate details of a business bankruptcy to protect your interests.

There are a lot of attorneys out there, but they do not all truly care about their clients. When you choose Bloc One Services, LLC, we give you Hope for a fresh start. Attorney Hope Blocton understands the financial difficulties that many businesses face. She can help you turn your financial setbacks into comebacks by working with you to determine the most effective ways to deal with your debt load. We are not here to judge you; we are here to help by providing high-quality legal services that help you reach your goals at reasonable prices.

Restructuring Your Bowie Business Debts

By filing for bankruptcy, you may be able to continue your business operations. After filing, the automatic stay will go into effect immediately, preventing creditors from attempting to collect debts or take legal action against you. Hope Blocton will negotiate with your creditors, looking for forgiveness for at least part of your debt, extended repayment periods, reorganization of your business, or other favorable terms. Restructuring your debt obligations can help you keep your doors open by providing the opportunity for better cash flow.

Bowie, Maryland Businesses May File for Bankruptcy for Many Reasons

If your company is struggling, you are not alone. Financial strain does not mean you are a poor manager. Businesses may face financial difficulties for a variety of reasons, including:

• Overextension: New business opportunities often mean you must first make an investment based on expected growth, and you may have financed your expansion by borrowing money. If your new venture does not meet your expectations, you may be unable to repay your debt.
• Seasonal Sales: During slower periods, your cash flow may not support your debt load.
• Market Fluctuations: The overall economy can influence your sales and profitability. Losing customers, supply chain issues, and economic downturns can lead to financial losses.
• Unanticipated Costs: Equipment repairs and replacements, damage to your building, fines, and other situations can require large financial outlays. You must address these issues promptly, but the expenditures may stretch your finances too thin.

When cash flow is reduced to a trickle, or your debt obligations become unmanageable, filing for bankruptcy may help you stay in business.

Reorganizing Your Business Debt in Maryland

Hope Blocton's extensive preliminary work includes assessing your business's financial situation and discussing your goals. With that knowledge, she will explain your bankruptcy options and help you decide on your next steps.

Chapter 5

Small businesses do not necessarily need to deal with the same complex financial concerns that may affect large corporations. Chapter 5 bankruptcy, which is the term used for cases filed under subchapter V of Chapter 11, provides a streamlined approach that can benefit smaller companies. However, not all businesses qualify for Chapter 5. This option usually takes only months rather than years. The streamlined approach can also help you save on legal fees and other expenses, and you can retain control over your company as you reorganize.

Chapter 11

This type of business bankruptcy is much more complex. It requires the careful creation of a comprehensive reorganization plan that outlines how your company expects to restructure its operations and debts. The bankruptcy court and your creditors must approve your plan before it can be implemented. If your creditors object, the court may not approve your plan.

Because of the court's heavy involvement and a creditor's committee, this option is more expensive and can take significantly longer than Chapter 5. However, Chapter 11 bankruptcy may be the better option for your company.

Contact Our Bowie, MD Business Bankruptcy Attorney

If your business's future is uncertain due to overwhelming debt, let Bloc One Services, LLC help you restructure through bankruptcy. We serve businesses of all sizes in Washington D.C. and Prince George's, Montgomery, and Charles Counties. Get started today by scheduling your free consultation. Contact us online or call 240-200-0076 now.