The modern medical world is full of uncertainties and turbulence. The scenario could be even more pressing for any medical practice. In such a situation, opening a new venture could be highly risky. Still, many California Doctors test their hands in this fluctuating economy. Some Laguna Beach doctors even make a successful venture amid uncertainties and risks. However, not all medical practices survive the turbulence and hardships of the modern economy. Many practices incur consistent losses. Subsequently, they’re compelled to shut their medical office operations. If you’re one such California medical professional, consider filing for chapter 11 bankruptcy. Although other options exist, chapter 11 is a better bet.
Why chapter 11 bankruptcy Laguna Beach CA is highly advised?
Many California Doctors get mentally disturbed when filing for bankruptcy. They don’t know which option will work for them. Some medical practices go for chapter 7 bankruptcy. On the other hand, many businesses seek alternative options. However, all other options and alternatives won’t yield the desired results. You’ll regret your choice sooner or later. Chapter 11 is a better route for your business. Here’s why you should opt for this popular option.
Once the rumors of your possible bankruptcy go viral in the medical world, your creditors get alert. Each of them tries to take suitable actions to recover their dues. People lose trust in your venture. They no longer want to communicate with you. Rather, they’re interested in getting their dues as quickly as possible. Lawsuits and foreclosure applications become a common scenario.
When you file a petition for chapter 11 bankruptcy, you get an automatic stay on various undesirable situations. Banks, creditors, and other collection activities are put to halt. The automatic stay is extremely helpful to Laguna Beach medical practices that are facing threats from collection agencies. Your creditors can’t take any action as a result. In the process, you get an opportunity to reorganize your business.
Lowering of interest rates
Perhaps, the prime reason for bankruptcy is the high cost of borrowing. Higher interest amounts can eat away plenty of receipts of a medical practice. In case the California medical practice is passing through a recession, higher interest charges could affect the financial health of the venture. When that happens, you’ve no other option than shutting your office doors.
Chapter 11 bankruptcy comes as a boon to medical professionals. You can use the reorganization procedure to adjust the rates of interest on certain loans. For instance, you get an opportunity to lower the rates on high-interest loans and borrowings secured by commercial equipment, real estate, or vehicles.
Protection of Laguna Beach Medical Practices
When your financial situation crumbles, creditors don’t intend to do business with you. They just want their money back. To recover their dues, they might take appropriate actions. That can affect your daily business activities. Chapter 11 bankruptcy serves as a shield against such scenes.
You get to continue your medical field operations. No one can interrupt your activities. Your California medical practice name and goodwill aren’t lost. Plus, you’ve access to your debtors. You can also make new business contacts and run your venture without any hindrances.
More time to pay off unsecured tax debts
When misfortunes hit your Laguna Beach medical practice, they don’t come singly. Rather, they come in battalions. As well as handling uncertain times, you’ve to look after the financial trouble your practice faces. At times, your creditors may threaten you to get their money. Your bankers may warn you of a legal suit. These creditors could wait, but what about government dues?
Your tax payments could be delayed due to the lack of funds. Consequently, authorities could liquidate your assets for tax dues. Laguna Beach Chapter 11 bankruptcy keeps such a scene at bay. You get a chance to use the reorganization process wherein you enjoy extended time for the payment of unsecured tax dues.
Sell California property clear and free of interest and liens
When you get into financial trouble, you need urgent money. You might have purchased land or other estates during good times. Now you may want to sell the property and use the sale proceeds for your venture. However, your creditors and banks may not allow you to sell the property. Rather, they might seek their stakes in the property.
If this is the case, your financial position will become worse. Chapter 11 bankruptcy helps you resolve these issues. The bankruptcy court will let you sell the property that’s free of liens and interest. By selling the Laguna Beach property, you can inject substantial money in your business. In this way, you could get your medical practice back to normalcy.
Cure accelerated or defaulted obligations
As a medical professional, you may use chapter 11 to cure certain defaults on obligations, including leases and mortgages. When a borrower makes any default on legal obligations, lenders accelerate the obligation. Usually, the lender seeks the entire sum to be paid in one installment. That can be highly disheartening, especially when you’re facing a financial crunch.
Being bankrupt helps you get rid of this problem. Through the reorganization process, you might be in a position to cancel debt acceleration. Even better, you get to return the obligation to the pre-default status.
Recovery and avoidance of involuntary transfers in California
When your financial position is in the doldrums, your creditors and banks may possess your vehicles and other assets against your desires. To recover your assets, you’ve to make quick payments. If you don’t pay, you could lose your assets.
However, once you seek California bankruptcy protection, you could recover and avoid certain bank levies, lien notices, and wage garnishments. You may even seek recovery of equipment that took place prior to your chapter 11 bankruptcy filing procedure.
Total bankruptcy is the biggest punishment for any medical practice. Once you liquidate your venture, you could hardly get back to normalcy. You could be denied applications for loans and other considerations related to starting a new practice. It’s better to protect your venture from complete bankruptcy. That’s what the chapter 11 bankruptcy Laguna Beach CA does for you. Without bothering about creditors, you may continue your California medical practice and take appropriate actions to pay off your dues over time.