Chapter 11 bankruptcy can help a struggling business become financially viable once again. At SRIS, P.C., our experienced bankruptcy attorneys can help businesses in Maryland and Virginia reorganize under the Chapter 11 bankruptcy laws. Contact us today to discuss your bankruptcy concerns.
When Is Chapter 11 Bankruptcy the Best Option?
Although Chapter 11 Bankruptcy is available for both individuals and businesses, it is generally most suitable for businesses that have successful plans with the potential to generate future profits, and simply need the opportunity to restructure debt obligations and contractual to maintain current business operations.
If you have become unable to pay your creditors, but want to continue operating, Chapter 11 bankruptcy might be an appropriate choice for you. Much like Chapter 13 bankruptcy, which is reserved exclusively for individual debtors, Chapter 11 bankruptcy gives a debtor the opportunity to create a manageable financial plan while recommitting to some previous agreements.
What Happens in a Chapter 11 Bankruptcy?
After filing a petition for Chapter 11 bankruptcy, there are some immediate consequences and effects. First, there is an automatic stay placed on any liens that your creditors have placed on your assets – meaning that they are generally not allowed to repossess these assets. When you file your petition you will have to file a list of your creditors, and a government agent will appoint a creditors’ committee to represent the interests of all of your creditors.
The goal of Chapter 11 bankruptcy is the successful rehabilitation of your business. The government understands that to successfully rehabilitate your business, you have to continue with normal business operations – so you will generally continue to have a great deal of flexibility in running your business.
After filing your petition for Chapter 11 Bankruptcy, you’ll generally file a Chapter 11 plan, outlining your future obligations to your creditors. As you work to create an agreement that will satisfy your creditors and allow you to continue operating your business, the bankruptcy court will supervise the reorganization of these obligations. The court has the authority to relieve you of some of your prior commitments, giving you the opportunity to make choices that will ensure the future profitability of your business. If you are able to reach an agreement with your creditors, the court must confirm your plan.
Contact Us Today to Discuss Chapter 11 Bankruptcy
Declaring Chapter 11 bankruptcy can be an effective business decision if you are struggling to meet your debt obligations, but it can also be an expensive and time-consuming process. To determine whether Chapter 11 bankruptcy is a good choice for you, discuss your circumstances with an experienced business and bankruptcy lawyer.
Come to SRIS, P.C. Our skilled bankruptcy attorneys can help you select the best course of action for your business. Call us at 888-437-7747 or complete our online intake form.
We Are a Designated Debt Relief Agency under Federal Law. We Provide Legal
Assistance to Consumers Seeking Relief Under the Bankruptcy Code.
