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Chapter 13 bankruptcy allows small business to restructure debt

Throughout Kentucky, many dream of owning their own business. It could be a small retail store, a restaurant or even a lawn care business. Regardless, the business would be theirs, and they would dictate how, where and when they would work. For some, this dream becomes reality, and then it becomes a financial dilemma. Often, small business enterprises have financial problems and spawn the need to look for solutions; Chapter 13 bankruptcy may be the solution.

Cash flow is often one of the most serious problems for small businesses. The bills keep coming in; however, if income is not coming in, the business is not able to pay its bills. When this happens, creditors begin to call and suppliers often will not allow needed supplies or inventory to be delivered.

The economy can be helpful or it can be hurtful to the small business. When the economy in which the business operates is booming, the business usually sees an increase in business and cash flow. However, when the economy takes a downturn, many small businesses suffer as well. Rather than go out of business, sometimes the answer is to work with creditors to establish a workable payment plan.

Creditors are not always willing to establish payment plans; however, with Chapter 13 bankruptcy, the Kentucky business is able to restructure its debt. This restructuring does not erase the debt, but it does make it more manageable so that the business can continue operating. Consulting with experienced legal counsel will help the small business owner decide which option is the most appropriate.

Source: totallandscaptecare.com, "How to save your landscaping company from bankruptcy", Jill Odom, Dec. 20, 2016

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