How Chapter 11 Works
When your business is facing financially difficult times, it may seem like the whole world is against you and there is no escape in sight. Fortunately, as a business owner, you do have options for taking control of your finances that allow you to stay in operation while also getting out of debt. One option available to corporations, partnerships, and even individuals with small businesses is Chapter 11 bankruptcy. Unlike Chapter 13 bankruptcy, there is no limit on the amount of debt, and it also lets business men and women restructure their debts while remaining open to customers.
If you are a business owner and your business is currently struggling financially, you should consider filing for Chapter 11 bankruptcy to reorganize your business and finances. For more information about how Chapter 11 bankruptcy works and can benefit you, contact our Raleigh Chapter 11 bankruptcy lawyers at the Bradford Law Offices, PLLC, today at 919-758-8879 to schedule a free consultation.
Chapter 11 Bankruptcy Details
Unlike Chapter 7 bankruptcy, debtors under Chapter 11 bankruptcy are allowed to continue operating his or her business under court supervision and are also allowed to keep all possessions and assets. When an individual or corporation files for Chapter 11 bankruptcy, the debtor must negotiate a reorganization plan for his or her business. This plan has to then be approved by the creditors committee before the debtor can begin reorganization.
Unlike most other bankruptcy Chapters, Chapter 11 bankruptcy allows for the debtor to make their own reorganization plan and act as the trustee for their plan. This means that they determine the payments to be made and to which debtors. However, this will be strictly regulated by the courts and, if a debtor is unable to consistently make the agreed upon payments, their case may be dismissed or converted to another type of bankruptcy.
To learn more about how a skilled legal representative can help you file for Chapter 11 bankruptcy and get you out of debt, contact our Raleigh Chapter 11 bankruptcy attorneys of the Bradford Law Offices, PLLC, at (919) 758-8879 today.