Of the various types of bankruptcy, Chapter 11 is the one used by business entities or individuals that exceed the debt limits associated with Chapter 13 bankruptcy. Chapter 11 bankruptcies offer many benefits so you should take time to understand what it could mean to your business by contacting Bethlehem Bankruptcy.
Chapter 11 Bankruptcy for Businesses. Probably the most important aspect of Chapter 11 bankruptcy is that it allows a business or an individual to continue to operate and generate revenues, and collection actions by creditors are suspended, except as permitted by the bankruptcy court. The business and activities of the debtor are under the supervision of the bankruptcy court.
Chapter 11 bankruptcy offers many advantages to a business in financial trouble. For example, it allows the business to attempt to reorganize instead of liquidating, it saves the jobs of those people employed by the business that would otherwise be lost, and it preserves many of the business’s assets. A liquidation of the business to pay debts would mean the end of the business. Under Chapter 11, the business can continue to operate until it regains financial stability. If your business is evaluating Bethlehem debt relief options, Chapter 11 bankruptcy may be a good alternative to consider based on these and other benefits.
Chapter 11 bankruptcy may be the most difficult type of bankruptcy. It requires the help of an experienced Bethlehem Bankruptcy Lawyer. While an individual can represent himself or herself in a bankruptcy case, a company, partnership, LLC or other legal entity must have an lawyer for court proceedings. An experienced attorney can be the difference between successfully reorganizing a business, or in having the business fail. You will need advice on many topics including dealing with creditors, filing required reports, defending creditors’ actions to repossess or foreclose on collateral, structuring a plan of reorganization and other aspects of chapter 11. Contact a board certified Bethlehem Bankruptcy Lawyer for more information on Chapter 11.
Chapter 11 bankruptcies may be the solution you need if your business is in trouble and you are drowning in debt and creditor actions. It provides hope to business owners who are struggling with the economic downturn. With Chapter 11, a business can reorganize debt and survive to prosper once again.
Chapter 11 Bankruptcy for Individuals. Individuals who file for Chapter 11 bankruptcy are persons whose debts exceed the debt limitations for Chapter 13 or have the need for the more flexible structures of debt relief available in Chapter 11. Chapter 11 gives individuals an opportunity to reorganize their debts in a manner that will allow them to get back on track financially.
Chapter 11 will allow the restructure of debts on different terms and conditions than available in Chapter 13. However, the fees, expenses, and time involved are generally much higher for a Chapter 11 case. Chapter 11 is a bankruptcy where all creditors are allowed to participate by voting on a plan of reorganization.
If you are an individual whose current debt exceeds the debt limits of Chapter 13 bankruptcy, you will need to discuss the intricacies of Chapter 11 bankruptcy with an experienced board certified Bethlehem Bankruptcy Lawyer. Chapter 11 bankruptcies offer you the protection you need, but you will need solid legal support navigating the Chapter 11 process.