Business Debt Restructuring is better than Bankruptcy
Why is business debt restructuring better? It is because business debt restructuring is cheaper and safer than bankruptcy.
Let me explain the words “cheaper” and “safer.” The only cost associated with a business debt restructuring is the time to negotiate with bankers, creditors, tax authorities and suppliers.
Besides, the payoff is large. You can expect on average a 45% discount in debts. This is in contrast to Chapter 11 bankruptcy that will cost your firm at least $50,000 in lawyer and court fees and six figures is more likely.
Your worst strategy is to file Chapter 11 bankruptcy to reduce your debt load. In our experience, only 1 out 5 firms will survive the Chapter 11 filing. The other 4 out of 5 cannot survive because they do not have the cash to pay expensive lawyers.
(By the way did you know that in a Chapter 11 filing, your cash-strapped firm has to pay the attorney fees for both your firm and for your creditors? Doesn’t sound fair does it? That is why so many firms do not survive Chapter 11.)
So if you want to give your firm its best chance of survival and save money, your best choice is to develop a business debt-restructuring plan.
As part of this work you need to get a copy of Kevin Muir’s The Insider Secrets to Saving Your Business: The Step-by-Step Turnaround Guide. This is the business debt-restructuring bible and you cannot afford to be without it.
It may very well shorten your turnaround time by at least 6 months. In addition, by following the guidance in the Insider Secrets guide, you will have a lot lower chance of making stupid mistakes when negotiating with your creditors.
Frankly, you do not have much to lose by following a business debt reduction strategy. In the unlikely event that your negotiations fail with your creditors, you can always shoot the dice and file for Chapter 11.
Peace!
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