As a chapter 11 lawyer, we can help your business pay back debts gradually over time, so you can continue to operate and maintain the cash flow you need to sustain. Getting into debt is easy. It requires ordering too much inventory, over-hiring, signing a lease that is more than you can afford, betting on the wrong prospects or customers, etc. The million decisions you make every day can either help your business to succeed or put it on the path to financial ruin. Even the most stable of businesses can get into financial trouble as the marketplace suddenly changes or a major client goes out of business. When these unpredictable things happen, you may find yourself in an impossible financial situation. Filing for bankruptcy can help you get out of it.
Facts About a Chapter 11 Bankruptcy Filing
- This type of bankruptcy filing is for businesses only.
- It is more expensive for businesses to file for bankruptcy than it is for individuals. If you do not have the funds to file and pay for legal assistance, we can discuss negotiating with your creditors outside of court, since this can also have a positive impact.
- It is considered a reorganization because your debts are paid back over time in a manner that is affordable. Your debts will not be wiped out or eliminated like they are in a personal chapter 7 filing.
- Once you have filed, you will become a “debtor in possession,” which means that you continue to keep and control your assets during the reorganization process. If you are worried that some of your business equipment may be repossessed or that you may lose inventory because of late payments, this could be a good option for you to maintain those assets, at least temporarily.
- You can continue to operate your business while going through the bankruptcy process. The goal is to help your business financially stabilize so you can meet all your obligations in the long-term, rather than having to shut down due to your debt load or lack of sufficient cash flow.
- A committee will be established to help administer the case. This committee will consult with you regarding the administration, look into your conduct and how you operate your business and help create a plan for reorganization.
A Chapter 11 Lawyer Can Help Prepare Your Paperwork
There are numerous forms that must be completed when filing for bankruptcy. As attorneys, we can help you complete them correctly and file them in accordance with local law.
You must provide the court with:
- A schedule of your assets and liabilities
- Any commercial leases or executory contracts
- A schedule of your income and expenses
- Statement of financial affairs
Speak With a Chapter 11 Lawyer Today
We make it easy to get into a better financial situation. It all starts with a consultation, where we can discuss your business’s financial situation and chart a path forward.