Raleigh Chapter 11 Bankruptcy Attorneys
The Raleigh Chapter 11 bankruptcy lawyers at the Bradford Law Offices, PLLC know that businesses may carry significant debt for a number of different reasons. For newly started businesses, it is not uncommon for debt levels to be considerable for several years, due to high start-up costs and sometimes unreliable revenue streams. Even existing businesses may be required to carry large amounts of debt during difficult economic stretches or as an operating cost. However, if the debts a business owes become unmanageable, it may be necessary to pursue Chapter 11 bankruptcy protection to resolve the problem.
In North Carolina, Chapter 11 Bankruptcy requires businesses to take stock of their assets and debts and then draw up a plan of reorganization to present to creditors. Chapter 11 is also referred to as “reorganization” bankruptcy, as the reorganization process proves that the business will become solvent at a point in the future after the business follows the approved plan to repay creditors by resolving to operate a leaner and more profitable business.
In spite of the negative connotations some people attach to bankruptcy, it can actually be an extremely useful tool to both businesses and private individuals alike. If you or someone you know owns or operates a business that is struggling to manage its debt problems, an experienced legal professional can help you understand the full range of options available to you. Contact the Raleigh Chapter 11 bankruptcy lawyers of the Bradford Law Offices, PLLC today at (919) 758-8879 to speak with a qualified member of our legal team.
How We Can Help
At the Bradford Law Offices, PLLC, we fully understand the ways that Chapter 11 bankruptcy could positively affect your company. If you are considering Chapter 11 as a solution to your unmanageable debt, contact us today to learn more about:
There are a number of different features of Chapter 11 bankruptcy from which a business may benefit, and just some of these include:
- The ability to keep a business running during the bankruptcy process
- Protection against creditor harassment
- Possibility of obtaining loans at favorable rates
- Litigation against the debtor is put on hold
These and other benefits have made Chapter 11 bankruptcy an attractive option for many businesses facing significant financial problems, and it may be right for you. Contact us today to learn more.
Frequently Asked Questions
How Can Chapter 11 Bankruptcy Protection Help Me?
Chapter 11 bankruptcy protection offers companies and individuals a unique option while working to repay their debts. Unlike Chapter 7 bankruptcy and Chapter 13 bankruptcy, Chapter 11 bankruptcy allows you to keep your business open with protection against creditor harassment, as well as enabling the business owner to potentially obtaining loans at favorable rates. Typically, any litigation against the debtor is put on hold. On the other hand, Chapter 7 and Chapter 13 bankruptcy are often helpful for those with much more serious debt or financial turmoil. The debtors may have to liquidate their personal property in order to pay back creditors. Chapter 11 bankruptcy, however, allows debtors to remain in business under court supervision and owners are also allowed to keep all possessions and assets. The company must, however, negotiate a reorganization strategy for the business that must be approved by the creditor committee. Chapter 11 bankruptcy allows the debtor to make the reorganization plan and act as a trustee. With Chapter 11 bankruptcy, your business may remain open during the process so that you can reorganize the company and hopefully regain your financial footing.
Before choosing to move forward with this “reorganization” bankruptcy, it is important that you consider whether your business is salvageable. Filing Chapter 11 bankruptcy is a long process that takes substantial time, documentation, expenses, and legal insight. If your business is currently under the stress of debts and loans, Chapter 11 may be able to ease those burdens while you continue operations. However, if your business’ future prospects for revenue will continue to be minimal, it may be better to consider another bankruptcy option. An attorney can help you decide if Chapter 11 is right for your business.
What is reorganization bankruptcy?
Debtors filing for Chapter 11 bankruptcy must file a plan for reorganization that must be approved by creditors and confirmed by the bankruptcy court. A reorganization plan takes into account the business’s liabilities and assets, and attempts to prove that the business will be able to fund proposed payment plans to the company’s creditors. The debtor must also prove that they will not be redeeming any extra profits by liquidating assets. A business may do this by planning:
- Fractional payments
- Cuts to unprofitable or nonfunctional parts of the company
The plan must be as accurate and feasible as possible in order for creditors and the court to agree to the new obligations put forth by the debtor under Chapter 11.
What are the Benefits of Chapter 11 Bankruptcy?
It is natural for businesses to face financial setbacks from time to time. These hardships can put an enormous strain on the business and if they last for a length of time, it may be a good idea to consider filing for Chapter 11 bankruptcy. Filing for Chapter 11 bankruptcy is a tool that business owners may utilize to restructure their company, put a halt to litigation against the business, and get rid of threats from creditors.
Do I need a bankruptcy attorney?
While individuals and companies can file for bankruptcy without a lawyer, it is in your best interest to hire an attorney to handle your case for you. Determining which bankruptcy you should file for can be complicated, but it is an important decision that can have long-term consequences. A knowledgeable bankruptcy attorney will be able to help you decide what the best course of action may be for your business. Filing on your own will cost you hours of research, time, and effort determining which option is best for you. However, a skilled and experienced bankruptcy lawyer will help protect your interests and give you the peace of mind that you deserve.
Why choose Bradford Law Offices, PLLC?
Attorney Danny Bradford has more than 20 years of experience in bankruptcy law. Bradford Law Offices, PLLC‘s team understands the stress that accompanies running a business even in profitable times, and for years has made the filing process as painless and smooth as possible.
Mr. Bradford specializes in bankruptcy, and understands the ins and outs of federal and state laws guiding Chapter 11 plans, and is intimately familiar with the complex documentation required of Chapter 11 debtors. If your business is struggling to repay creditors, contacting the Bradford Law Office to discuss your legal options is the first and most important thing you can do. We are happy to have provided financial relief to esteemed members of the Raleigh community for the last two decades and are ready to take on a full reorganization of your business.
If you or someone you know is struggling to resolve their business’ financial issues, you should speak with a knowledgeable legal representative who can help you determine the best course of action going forward. Contact the Raleigh bankruptcy attorneys of the Bradford Law Offices, PLLC at (919) 758-8879 today to discuss your situation.