Chapter 11 Bankruptcy
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What is Chapter 11 Bankruptcy?
If your business is facing high levels of debt, a Chapter 11 bankruptcy may offer a way to reorganize finances while potentially continuing to operate. Chapter 11 bankruptcy can provide a structure for making a plan for reorganization of your business debts, while allowing for you to retain operational capacity of your company.
Chapter 11 bankruptcy allows for reorganization, typically involving partnering with another corporation or entity. If Chapter 7 or Chapter 13 bankruptcies are not suitable to your situation, a Chapter 11 Bankruptcy can offer a way forward for handling the complexities involved with debts for businesses or even individuals with substantial assets of complicated financial situations.
Chapter 11 Can Help You:
- Keep your business operating
- Discharge debt
- Develop a repayment plan
- Address debt issues
- Negotiate with creditors
- Get out of debt
How does Chapter 11 bankruptcy work?
Chapter 11 is not advisable for all debt situations; for some debtors, Chapter 7 or 13 may be a better fit for resolving their financial situations. We will help review your circumstances and see whether your business is a viable candidate for Chapter 11 during an initial consultation. If your business qualifies for a Chapter 11 bankruptcy and you choose to proceed with our firm, we will start processing your case.
Chapter 11 bankruptcy, often called “reorganization bankruptcy,” provides a framework for developing a plan to repay creditors while still keeping your business operating. This allows a business to continue providing its employees with jobs, pay creditors, and if applicable, produce a return for stockholders. In a Chapter 11 case, the debtor proposes a plan to creditors. If accepted by the creditors and approved by the court, Chapter 11 allows a debtor to reorganize. Alternately, a debtor may propose a plan for liquidation, ceasing business operations. While Chapter 11 usually applies to businesses, it is also available to individuals.
If Chapter 11 bankruptcy is the right choice for your business, once you fire the firm we will collect the necessary information and documents to file a petition with the bankruptcy court. When we file the petition, we will also file a plan that proposes how you will repay your creditors over the life of your case.