When a commercial real estate project has not gone as planned, bankruptcy options may be able to help out. There are different types of bankruptcy protections and different bankruptcy options to consider and many can help when a commercial real estate project has fallen under water.
Which bankruptcy option is best depends on the goals of the party facing the financial difficulties and the situation and circumstances they are in. There are both personal and business bankruptcy options to consider which can sometimes overlap depending on how the filing party’s affairs are structured. All bankruptcy protection options enjoy certain features in common that can help whenever a filing party is facing overwhelming debt and financial struggles they are unsure how to address.
All bankruptcy protection options allow the filing party a period of time known as the automatic stay during which time creditor collection actions are halted during the bankruptcy process. This can provide much-needed breathing room for the filing party and help them focus on the next steps if they are trying to save a business or an asset or to address whatever concerns they may be facing. Both reorganization and liquidation bankruptcy options are available to individuals and businesses based on their needs and goals.
Bankruptcy protections may be able to help with repossessions, foreclosures and other concerns that might come up and can also provide debt relief. It is important for a business or individual struggling with overwhelming debt or a project that is failing to be familiar with different ways the bankruptcy process may be able to help them through.