Filing Chapter 11 Bankruptcy

Chapter 11 bankruptcies are referred to as a “reorganization,” they’ll generally allow someone to keep their business running while they get things back on track.

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.

What is a Chapter 11 Bankruptcy?

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.

here are a number of advantages to going with a Chapter 11 bankruptcy:

• You can maintain the operations of your business
• You’ll have time to sell off assets you don’t need or can’t afford in order to pay off creditors
• Modification of terms on secured debts
• Discharging debts which simply cannot be paid back
• No sacrifice of your own “disposable ”

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.