Chapter 11 bankruptcy allows business owners an opportunity to restructure and repay all or part of their debt without worrying if their assets will be seized or if they will lose their business. In this Chapter 11 bankruptcy overview, you will find basic information about this form of bankruptcy and how our firm can help you file.
An Overview of Chapter 11 Bankruptcy
There are several different types of bankruptcy, and each has its own rules and is best suited to specific entities or circumstances. Chapter 11 bankruptcy is traditionally suited for medium-sized to large businesses, however a 2019 change to the bankruptcy laws has made Chapter 11 more feasible and appealing to small businesses. You may qualify to file for Chapter 11 bankruptcy if:
- You run an LLC, a corporation, or another type of business.
- You are unable to keep up with debt payments.
- You are willing and able to design and adhere to a debt repayment plan.
Businesses that are considering filing for bankruptcy should first ensure they understand the benefits and drawbacks of each bankruptcy type. For example, filing for Chapter 11 bankruptcy can be very expensive in some cases.
If you are a small business owner considering Chapter 11 bankruptcy, you have two options: file under a special, streamlined subsection of Chapter 11 as defined by the U.S. Courts or consider another type of bankruptcy. Our firm would be happy to sit down with you to talk through all possible options.
For a legal consultation with a lawyer serving North Carolina and South Carolina, call 828.286.3866
Are There Options Besides Chapter 11 Bankruptcy?
If your business is in financial trouble, Chapter 11 bankruptcy is not necessarily your only choice. Other types of bankruptcy include the following:
- Chapter 13 is for self-employed individuals that have run into financial trouble and need more time to get their finances in order. They must come up with a debt repayment plan that meets their creditors’ approval.
- Chapter 12 is reserved primarily for family fishermen and farmers. As with Chapter 13, anyone filing chapter 12 must design a repayment plan.
- Chapter 7 is for those with no foreseeable way of ever paying their debts. They may be required to liquidate certain assets to pay what they can.
Chapter 7 is the only type of bankruptcy discussed here that does not require any sort of debt repayment plan. Those who file Chapter 7 are not expected to pay back any more than they can afford by liquidating non-exempt assets.
Filing for bankruptcy is a big step, and it is not right for everyone. For example, your business may be able to avoid bankruptcy by negotiating with creditors or coming up with a repayment plan without going through the bankruptcy process.
Personal Injury Lawyer Near Me 828.286.3866
Legal Representation and Chapter 11 Bankruptcy
Per the U.S. Bankruptcy Court, businesses filing Chapter 11 bankruptcy are required to retain legal counsel in North Carolina. We can help your business:
- Make legal decisions: Is Chapter 11 right for you? Are there viable alternatives? We can discuss your situation and help you decide what next steps you should take to protect yourself and your business.
- File paperwork: Filing for bankruptcy often involves filling out multiple court forms and submitting many types of documentation. We can identify what you need and even complete paperwork on your behalf.
- Meet with creditors: Our team can serve as a “go-between” so that you do not have to have direct contact with your creditors. We can even negotiate with them if they are open to it, and you can let us know if you prefer this option to bankruptcy.
- Figure out how to repay your debts: Under Chapter 11, you need to come up with a plan for repaying a portion of your debts. Our team can help you do so and present the plan to your creditors.
- Attend hearings on your behalf: If we must appeal your case before a judge, we will do so without hesitation. We can collect all necessary documentation and present arguments in your favor.
- Keep in touch with you: We can contact you whenever there is a new development, and we always encourage clients to contact us if they need answers or reassurance.
To get started, all you have to do is call our firm for a free consultation. Members of our team are standing by day and night to review your situation and tell you more about how our team may be able to help.
Get Chapter 11 Bankruptcy Help Today
The team at Farmer & Morris Law, PLLC, understands how stressful bankruptcy filings can be and would like to help you through the process. Whether you know which type of bankruptcy applies to you or are still undecided about whether to file at all, our team can analyze your financial situation and determine which options may be best for you.
Call us today at (828) 286-3866 for a free consultation. We can provide a detailed overview of all bankruptcy types, including Chapter 11 bankruptcy, and help you decide if it is right for your business.