CHAPTER 11 BANKRUPTCY
Serving Kingsport, Johnson City, Bristol and Surrounding Communities including SW VA
Serving Kingsport, Johnson City, Bristol and Surrounding Communities including SW VA
If you’re a small business in danger of going under, it might be the right option for you and finding the right attorney can help you get through this complex process with a minimal amount of trouble.
A Chapter 11 bankruptcy is a motion to reorganize a business and keep it running and solvent while arrangements are made with creditors to pay off a percentage of the debts without them seizing assets. In essence, it’s a reorganization of the existing business structure to allow things to keep functioning while absolving some of your debts.
It’s also one of the most complex and hardest to accomplish out of the bankruptcy options available to business owners. It can be the only option for those operating a corporation, partnership, LLC, or other configurations where a Chapter 13 may not be applied.
For this process to go through, both the courts and your creditors will have to be on the same page and agree to let things happen. This means that having proper legal advice is absolutely essential to the process, as your chances of making this happen on your own are quite limited.
There are a number of advantages to going with a Chapter 11 bankruptcy:
You’ll have time to sell off assets you don’t need or can’t afford in order to pay off creditors
In most cases, a Chapter 11 will have a lifespan of three to five years which is generally plenty of time to bring everything up to snuff and help you get your life and business back on track.
If you think this option is right for you, then it’s imperative that you seek out the proper legal advice to make it happen.
While no bankruptcy is entirely straightforward, the option to utilize a Chapter 11 is a particularly difficult and complex process. You’ll need the best attorney you can find in order to make it happen.
There’s going to be a lot of negotiating going on, and an experienced attorney is your best bet in both making sure that the filing goes through and the long term success of your venture.
The thing is, making your Chapter 11 happen might be exactly the thing to keep your business afloat and allow you to make the long term changes you need to not lose everything. We’re here to help, our office is located in Johnson City, TN and we can make sure that you get the best advice possible and gain a fighting chance at saving yourself from losing everything that you’ve worked so hard for.
Contact us in order to get the legal advice that you don’t just need, but also deserve.
Depending on your situation, there are different types, officially known as “chapters” of bankruptcy, that you can file for. These different chapters of bankruptcy provide different results for different cases, and it’s important to have some knowledge on these chapters before filing for bankruptcy.
Chapter 7 bankruptcy is a commonly filed for chapter of bankruptcy and is intended for use by low to moderate income individuals with more debt than they’ll ever be able to repay. If properly executed, this chapter of bankruptcy can eliminate most or all of a person’s unsecured debt. If you’re eligible, Chapter 7 could be a great debt relief solution for you.
The Pope Firm is a professional team of bankruptcy attorneys in Johnson City, Tennessee. We are your trusted partner in dealing with the complex world of bankruptcy law. Whether you’re considering Chapter 7 bankruptcy, Chapter 11 bankruptcy, or Chapter 13 bankruptcy, our attorneys are here to guide you through the entire process. We understand that declaring bankruptcy is an important decision, and we work with dedication to help you qualify for bankruptcy relief using the means test. We also have expertise in small business bankruptcy cases, where we can help you make informed choices between Chapter 7, Chapter 11, and Chapter 13 bankruptcy, considering your unique situation. With The Pope Firm by your side, you can expect a professional team to explain the automatic stay and all relevant aspects of bankruptcy law. Contact us today for the best bankruptcy attorney services in Johnson City, TN.
I recently went through bankruptcy and the Pope Firm was very helpful in a very embarrassing situation. They went through the process of how bankruptcy works and made what could have been a very difficult time much easier to handle. I would recommend this law firm to anybody who is going through a bankruptcy. Everyone there is very knowledgeable and willing to answer any questions.
My experience at this firm so far has been excellent. Everyone there is very friendly, informative and willing to help in any way they can. I was impressed with how fast they got everything moving
Charles pope and his staff are wonderful and always ready to do anything they can to help. He explained what to expect in court and what needed to be done before hand. He assistants are very helpful and knowledgeable. He always kept me informed on the status of the case. I would highly recommend this firm to anyone who needs an attorney.
Bankruptcy occurs when an individual, business, or other entity declares the inability to repay its debts. If you file for bankruptcy, that means that debt collectors must pause attempting to collect debts from you. Bankruptcy often allows you to erase most, if not all, of your debts.
There are two types of debts, unsecured and secured. Some examples of unsecured debts are credit card bills, medical bills, or taxes. Secured debts can include car loans or mortgages, which use the purchased item as collateral. In many cases, filing for bankruptcy can keep this collateral protected and prevent foreclosure of your home or repossession of other assets.
Bankruptcy is governed by federal legislation under the Bankruptcy Code, which falls under the greater United States Code. Both federal law and local law inform the bankruptcy procedure. Federal bankruptcy judges, appointed by the United States court of appeals, preside over court proceedings in these cases. In court, the judge and a court trustee, review your finances to determine whether or not to discharge the debts at hand.
Each state has one or more bankruptcy courts. Tennessee has six bankruptcy courts throughout the state.
Filing for bankruptcy can be a daunting process, and working with a firm with expertise in the field can provide you with necessary guidance.
There are several types of bankruptcy. Most individuals, married couples, and small businesses choose to file under Chapter 7 or Chapter 13.
The primary difference between these two types is that Chapter 7 bankruptcy allows an entity to fully discharge its debts in a short period. A Chapter 13 bankruptcy involves reorganizing debts and creating a plan to repay those debts over an allotted time. After that time, Chapter 13 eliminates most of the remaining debts.
Chapter 7 bankruptcy is typically filed by those with very limited income and unsecured debts, the most common of which is medical bills. Chapter 13 bankruptcy is most often filed by higher income bracket individuals and those with more assets, such as a car or a home. The motivation for filing Chapter 13 bankruptcy is often preventing assets from being repossessed or home foreclosure due to outstanding debts.
Two other types of bankruptcy are Chapter 11 and Chapter 12.
Chapter 11 primarily applies to larger companies and corporations, but sometimes it is the right choice for small businesses as well. Chapter 12 applies to those who are considered family farmers.
Various considerations get factored into who should file bankruptcy. Filing bankruptcy may be the right choice for you if you are overwhelmed by debt. Regardless of what type of bankruptcy you file, as soon as the process begins, you are granted an automatic stay. A stay is an injunction that prevents creditors from collecting any debts for an allotted time. An automatic stay halts the process of, for example, foreclosing on a home or repossessing a vehicle.
A Chapter 7 bankruptcy will discharge most of your debts. Filing Chapter 7 is appropriate for those who make less than the median household income in Tennessee and whose assets would not be at risk. In this situation, your non-exempt property is sold to pay off creditors.
Chapter 13 bankruptcy allows you to create a plan to repay your debts. If you have non-exempt property used as collateral in secured loans, you can restructure your finances to pay off any relevant debts over the next three to five years. Chapter 11 functions in a similar way, but is exclusively for businesses.
Filing for bankruptcy can provide a fresh start for those bogged down with debt, either by restructuring finances or discharging debts entirely.
How bankruptcy affects business depends upon the type of bankruptcy filed.
Businesses classified as corporations, partnerships, or LLCs can file Chapter 11 bankruptcy. Chapter 11 allows for debt restructuring, while the business stays open. As in Chapter 7 and Chapter 13, an automatic stay activates as soon as your bankruptcy period begins. In an automatic stay, creditors cannot try to collect money or other assets from you.
During this period, you work with your lawyer to restructure your debts and develop a plan to get your business back on track. This plan must be approved by some of your creditors and a bankruptcy court to go forward. You will be able to repay your debts over several years.
Filing Chapter 7 bankruptcy discharges all of your business’s debts by liquidating your assets. The entire process can be completed quickly, often in several months. Chapter 7 allows for the discharge of most debts, excluding government taxes and fines.
Only individuals can file for Chapter 13 bankruptcy. Thus, although businesses cannot file, you can file Chapter 13 as the sole proprietor of your business.
When you decide to begin the bankruptcy process, the first step is to find a lawyer who is an expert in filing bankruptcy in Tennessee. Hiring a bankruptcy lawyer can indeed be expensive, but it is worth the cost. This professional can guide you through what type of bankruptcy is best for your situation and what to expect throughout the process.
Declaring bankruptcy wipes out many debts, but not all.
Bankruptcy can clear most unsecured debts, including:
Bankruptcy can also clear many secured debts, but it depends on whether you file for Chapter 7 or Chapter 13 bankruptcy. For Chapter 7, you will have to give up any non-exempt items you put up for collateral. For Chapter 13, they will become part of your repayment plan.
No type of bankruptcy covers these debts. If you file for Chapter 7, they remain outstanding. Under Chapter 13, you pay these debts along with your other debts.
Bankruptcy rarely covers student loan debt. However, it may be in some cases with proof of undue hardship.
Tax debt is also rarely covered, but bankruptcy may cover certain old unpaid taxes.