Chapter 11

Many businesses with serious debt problems are so harassed by creditors that they don’t have the time or peace of mind to fix their financial problems. If your business has problems with creditors, filing Chapter 11 bankruptcy can give you the breathing room you need to help your business succeed.

Chapter 11 bankruptcy is a form of bankruptcy reorganization available to individuals, corporations and partnerships.  It has no limits on the amount of debt and is the usual choice for large businesses seeking to restructure their debt.  Businesses that file for Chapter 11 are able to continue with almost normal operation as a debtor-in-possession.

Businesses can file Chapter 11 bankruptcy for a variety of reasons, such as stopping a foreclosure, renegotiating their debts, and terminated burdensome lease.  It can also be used by individuals who don’t satisfy the Chapter 13 requirements as a way to restricted mortgages, pay taxes, and eliminate unsecured debt.

The motivation to file a Chapter 11 petition is generally different than the motivation for filing a Chapter 7 petition. In a Chapter 11 proceeding the business is often profitable or could become profitable if it could simply dispose of unproductive assets, renegotiate contracts and debt obligations with onerous terms or settle actual or impending judgments in lawsuits that would jeopardize the ability of the business to continue operating.

The decision to file a Chapter 11 petition is only the beginning of the legal process. It is not the solution. There are no guarantees that a business will successfully reorganize.

To successfully emerge from Chapter 11, it is vital to have the right attorney beside you to help you make the right decisions. Unfortunately, the failure rate for Chapter 11 cases can be high. We have the expertise and experience to help a business through the process in the most effective and efficient manner possible.