Chapter 11 Bankruptcy Lawyer
Starting a business is no easy task. Understandably, you want to do everything in your power to protect what you’ve worked so hard to cultivate. If you’re a business owner struggling with debt, the thought of filing for bankruptcy may sound more than a little nerve-wracking. After all, the last thing you want to have to do is sell those hard-earned assets. It may seem like you have no other choice but to jump ship and sell everything—but this isn’t the case. Fortunately, you do have options that can protect you and your business.
What Is Chapter 11 Bankruptcy?
Chapter 11 bankruptcy, also known as reorganization bankruptcy, allows you to keep your assets and continue running your business. It is important to remember that, unlike Chapter 7, the debt is not resolved. Essentially, the debtor will do what they can to pay off their debts and stabilize their finances by attempting renegotiations with creditors, cutting expenses, and using future earnings. The good news is that filing for Chapter 11 bankruptcy does stop creditors from trying to collect.
While you may still have to sell some assets, those who file for Chapter 11 bankruptcy have much more control over the reorganization of their debt. However, this must be done under the court’s supervision.
Who Can File for Chapter 11 Bankruptcy?
Anyone can file for Chapter 11 bankruptcy, but because it’s the most expensive kind of bankruptcy, businesses typically file for it instead of individuals. However, there are no debt limitations or requirements. If you want to reorganize your debts and personal assets, you can file for this type of bankruptcy. The only individuals and entities that can’t file for Chapter 11 Bankruptcy are nonbusiness trusts, stockbrokers, commodity brokers, government agencies, and those who have had a dismissed bankruptcy case in the past sixth months,
Unlike Chapter 13 bankruptcy, you can extend the five-year payment period, which can be helpful but can further complicate the bankruptcy process. That’s where we come in. Here at Northern Legal, our Chapter 11 bankruptcy lawyers will help you every step of the way. Whether you need help filing for bankruptcy or need the legal advice of a trained professional, we’re here to help.