Chapter 11 Bankruptcy – For Corporations and High Net Worth Individuals
In recent times, the struggling U.S. economy has brought MANY corporations to the brink of financial ruin. If you find yourself approaching that same precipice but don’t want to liquidate, and risk losing your business in a Chapter 7 filing… Then opting for a Chapter 11 Bankruptcy may be the best way to keep your business afloat, and get a fresh start on things!
If you’re wondering what’s involved in a Chapter 11 Bankruptcy, and how it can save YOUR business, then have a quick read through the following pointers. They answer many of the questions we’ve heard most frequently in our 30+ years of helping other business owners like you.
WHAT ARE THE BENEFITS OF CHAPTER 11 BANKRUPTCY?
Under the U.S. Bankruptcy Code, there are numerous options available for businesses that are either seeking to liquidate their corporate assets or who wish to financially rehabilitate their company. Chapter 11 Bankruptcy is specifically geared towards assisting companies with reorganizing their debts and keeping their businesses open. Overall, there are a number of benefits associated with filing for Chapter 11, such as:
- It allows companies to propose their own repayment plans. The most important aspects of a Chapter 11 bankruptcy proceeding is that it enables a corporate debtor to develop a profitability plan. To illustrate, this allows the company to outline how they intend upon reducing their costs while seeking out new sources of income once their bankruptcy action is finalized.
- It enables a corporation to remain in operation. For a corporate debtor seeking a Chapter 11 reorganization, they are allowed to remain in operation while restructuring their debt and reorganizing their finances.
- It prevents a company from losing its assets. Businesses may choose Chapter 11 bankruptcy as a way to protect assets that would otherwise be subject to liquidation and sale in order to repay creditors. In essence, corporate debt is restructured under Chapter 11, and in some cases, corporate ownership may be transferred to creditors to satisfy the company’s debt.
- It allows corporate debtors to repay their debt over a period of time. Under Chapter 11, a debtor can spread out their debts, including taxes owed, over a period of time. Essentially, this frees up corporate resources in order to help a company rebuild itself and better manage its finances.
- It includes all corporate debts. All debts can be discharged under Chapter 11 bankruptcy. In other words, a business can include any and all debts in their bankruptcy action, such as tax debt, rent, equipment costs, bank loans and legal expenses.
Why is it important to hire an attorney for Chapter 11 Bankruptcy?
If you are contemplating filing for a Chapter 11 bankruptcy action, it is crucial to work with an attorney that has the skills and experience necessary to handle these complex types of cases. Chapter 11 reorganizations can be extremely complicated, requiring the assistance of a bankruptcy lawyer who can evaluate the facts of your case and develop proactive yet practical solutions to addressing the situation. Contact us today to learn about how we can help you save your business.
In general, a bankruptcy trustee is an individual who is assigned by the bankruptcy court to assist your creditors in reclaiming the money that they are owed. Meaning, a trustee will examine all of your property and may require you to surrender any non-exempt items of value to repay your creditors. However, few debtors in Chapter 7 actions end up losing their property since a trustee will only force the sale of assets that are worth enough to make a significant financial difference.
After the trustee reviews your case, you will be required to attend a creditor’s meeting where he or she will question you about your debt. Once this process is complete, the court will then discharge all of your qualifying debts.
OTHER TYPES OF BANKRUPTCY
Chapter 13 Bankruptcy
For High Income and Asset Owners
Chapter 7 Bankruptcy
Eliminate All Of Your Unsecured Debt
For Struggling Homeowners