If you want to restructure your business debt so that you can avoid bankruptcy then chapter 11 and 13 in the bankruptcy reform should be of great importance to you. These chapters can give your business a second chance by helping you avoid liquidation of your business assets. With the above in mind, it is necessary to restructure your operations and debt so that you can increase your income. You need to have a legal plan that is approved by federal laws before you embark on the program.

1. Have a look around and search for the different pay off debt restructuring agencies within your locality. Make sure you do a background check on each service. Contact the business bureau in your area. Ask the bureau whether the counseling agency is licensed by the American Board of Certification. Make it your point to interview a number of these agencies making sure you get good information regarding their success rate. You do not want to work with an agency with little or no success.

2. You need to give out more shares that will help generate more income. Your share prices may fall in reference to your financial troubles, but this should not worry you. Share with your shareholders the ways that you are planning to use to restructure the business and avoid bankruptcy.

3. Give out part of your debt for creditor equity. Make sure that the equity does not exceed 50% to avoid giving your lenders majority vote in the company. Make sure you still remain at the helm of the company.

4. Make a formal presentation of your plans to your lenders. You can decide to pay your debt by yourself or use a third party debt agency, if you decide to use the latter then the debt agency will directly link with your lenders.

5. You need to do everything possible to increase your income while reducing on expenditure. Your plan needs to evaluate all the company’s processes and take into account what can be reduced on and what you cannot. You may even decide to downsize your labor force. Remember all this will depend on your pay off debt plan.

6. If you decide to use a third party to make your payments, make sure that you know your debt payment progress. Make sure your lenders are getting their money. All this should be done to avoid cases where you might be forced to apply for bankruptcy.