It is not uncommon for a New York resident to read a local newspaper story about a major corporation filing for business bankruptcy. To the uninformed reader, a headline indicating a business’s entry into the bankruptcy process may signify the start of its demise into obscurity. However, many of our readers know that bankruptcy does not have to be an ending, but rather a beginning.
Large companies with extensive holdings and diverse assets can, in some cases, reorganize themselves in ways that allow them to return to profitability. These companies may possess a multiplicity of options that let them make changes to their structures without losing their footing in their industries. However, not every major corporation that files for bankruptcy emerges successful on the other side, and in some cases smaller companies struggle to come out of business bankruptcy with their doors still open.
Because they do not possess the same resources as major corporate players, small businesses can have a hard time in bankruptcy. Smaller companies may not have the same options for reorganization as companies with offices across the globe, or they may not have successful partners or sub-corporations that can financially support them throughout the bankruptcy process. Small businesses can find fresh starts in bankruptcy, but their paths to financial relief can look very different from those used by big companies.
At our law firm, we attempt to help businesses and their owners sort out their debts and assess whether bankruptcy is the right form of debt relief.