The last few years have been difficult ones for many New York residents. The economy has been shaky and jobs have been hard to come by. Many people have been left dealing with a large amount of debt that they just can't seem to pay back. New York businesses have not been immune from the hardships of the so-called Great Recession either. Many have piled up large amounts of debt as they have tried to make ends meet until the economy turned around.
Many people may not realize it, but businesses - and business owners - have debt relief options when they can no longer meet their obligations. In these cases, a Chapter 11 bankruptcy may be able to help stop the harassing creditor calls as the business works out a repayment plan. Through bankruptcy, many businesses can get the fresh start they need now that the economy is slowly starting to rebound.
One positive sign for many businesses that the economy really is in a better place, is new statistics about bankruptcy filings in 2013. According to reports, business bankruptcies across the United States dropped by 24 percent last year. In total, 44,111 businesses filed for bankruptcy protections in 2013. Total bankruptcy filings - both individual and business bankruptcies - also fell. In 2013, only 1.03 million bankruptcies were filled - down 13 percent from the previous year.
This report does not expect much change in the number of bankruptcy filings in 2014. In fact, it claims that some healthcare companies may actually turn to bankruptcy to deal with legal changes that have made operating more difficult.
Whatever the circumstances, New York businesses should understand that they have options when it comes to debt relief. With the right help, business bankruptcy may allow a company to continue for years in to the future and give it a real chance at success.
Source: Reuters, "U.S. business bankruptcies dropped 24 percent in 2013," Tom Hals, Jan. 6, 2014