Chapter 11 Lawyer
Being a Chapter 11 lawyer means that we are intimately familiar with this and all portions of the bankruptcy code. In Chapter 11 of the bankruptcy code, Congress has provided businesses, including small businesses, with a way to restructure their debt, change their business operations, and emerge as a more viable company that can actually make money. While there has been some stigma associated with bankruptcy, it is simply not a fact that this indicates a failed business. Rather, using Chapter 11 of the bankruptcy code provides a business with the opportunity to restructure their debt in a way that makes it possible for them to pay off debt, produce profit, and actually stay afloat. As a law firm, we know that there’s nothing that can kill a business faster than debt. Chapter 11 of the bankruptcy code allows a business to get out from this death spiral that has consumed too many businesses.
How Can Filing Chapter 11 Help?
A Chapter 11 helps stabilize business operations and can address any immediate threats that undermine the reorganization process. As your Chapter 11 lawyer, we will also be negotiating with creditors, preparing and filing the reorganization plan, filing the disclosure statement, and working endlessly to ensure that the bankruptcy court accepts the plan we have put forward. We will be with you every step of the way. Ultimately, keeping in mind the fact that Chapter 11 is designed as a reorganization tool, it is important for your lawyer to be your advocate who deals with the legal aspect of the bankruptcy, allowing you to deal with the financial and minor business fallout that may occur.
There are, unfortunately, many myths that surround the Chapter 11 process. As your lawyer, part of our job is to separate fiction from the truth. One myth is that Chapter 11 is too expensive for small businesses. This is simply not the case because, in 2005, Congress amended the bankruptcy code to enact special provisions that streamline the Chapter 11 process, especially for a small business. Another common fear businesses have is that once they file for a Chapter 11 bankruptcy, creditors will automatically stop doing business with them. This is not always the case, as many creditors understand that Chapter 11 is simply a reorganization tool, and if the supplier does not stand to lose a great deal, there is a chance that they will continue to deal with you even though you have filed for bankruptcy. Also, the bankruptcy court specifically prevents creditors from canceling a standing agreement based on the customer filing for bankruptcy or because the customer cannot pay their invoices because of the bankruptcy.
Operations During Bankruptcy
When you are involved in the restructuring process of your Chapter 11 bankruptcy, it is important to have a very clear understanding of how to operate. There will be restrictions on your capital, what bills you can pay, and how you are able to operate prior to and after your bankruptcy is approved. For this reason, you should have an excellent Chapter 11 lawyer begin, run, and finish the process for you while preserving the integrity of your business operations.