Some Louisiana residents enjoy substantial refunds on their tax returns. Others, perhaps including some business owners, wind up facing heavy tax debt that they might not be prepared to meet. Especially if a business is already struggling financially, such crisis can prompt an immediate need for debt relief.
A popular downtown dining restaurant in another state received a tax bill that threatened to put the owner out of business. However, by filing for Chapter 11 bankruptcy, he was able to secure a restructured payment plan while keeping his doors open for business. As opposed to Chapter 7 bankruptcy, which typically dissolves a business, Chapter 11 allows management, workers and payroll to remain the same while managing collection actions and reorganizing payment plans.
The restaurant owner said he and his wife are partners in the business. Penalties and interest charges reportedly kept accruing until the couple felt they had to do something to rectify the problem. In this case, Chapter 11 was the best solution because it will help them resolve their tax debt while continuing to serve their customers.
A debt relief plan that works for one business may not even be an available option to another. Every situation is unique, and it pays to seek knowledgeable guidance from an experienced bankruptcy law attorney before determining a course of action. There are eligibility factors involved with bankruptcy applications, and an experienced attorney can help a concerned Louisiana business owner make sure he or she fulfills the requirements associated with his or her chosen financial relief plan.