Navigating the intricacies of bankruptcy can be stressful and extremely difficult. At Maxwell Dunn Law, we have experience working with the details of business bankruptcy. We are here to give you guidance and walk you through the process. We can help you determine the best way to handle the situation your business is facing. Our goal is to use bankruptcy as a tool to keep your business operating and to use it as a protection against damages to your own finances. We do not want you to see this as the end of the road, but rather as a new beginning. We have worked with many clients who have faced similar situations to yours. Our team will endeavor to provide you with the counseling and legal advice you need. Instead of facing this overwhelming situation alone, turn to our team for assistance.
If you are seeking a Chapter 11 bankruptcy lawyer, contact our team. We will be happy to guide you through this process.
Who is Chapter 11 Bankruptcy for?
Chapter 11 bankruptcy is part of the United States Bankruptcy Code and is available to any business. This includes all of the following:
- Sole Proprietorships
However, that being said, Chapter 11 Bankruptcy is most commonly used by corporations. If you are running a corporate entity and you are interested in this option for the reorganization of your business, read on to learn more about the process for filing and the goal of this form of bankruptcy.
What happens in a Chapter 11 Bankruptcy?
In Chapter 11 bankruptcies, the debtor will actually retain control of the business operations. This is in contrast to Chapter 7 bankruptcies which require the selling of all assets. However, while the debtor retains control of operations, they are considered a debtor in possession and they must follow the governance of the jurisdiction of the court.
Because the goal of a Chapter 11 bankruptcy is to continue the operations of a business it is often referred to as a “reorganization bankruptcy.” During this process a reorganization plan must be put into place. This will usually involve negotiations of leases and contracts. The goal of Chapter 11 is ultimately for the business to become profitable again.
Chapter 11 is usually a voluntary bankruptcy filing. However, sometimes creditors will work together to file an involuntary Chapter 11 petition. When a business files for Chapter 11 they will bring a proposed plan for reorganization and how they will become profitable in the future. So how does the court decide whether or not to grant this specific business bankruptcy?
They will take into consideration some of the following:
- How likely is the plan to succeed?
- Is the plan being proposed legally and not in any way forbidden by law?
- Is this plan in the very best interest of the creditors?
This list is not exhaustive and there are other factors we can help you consider before you file for Chapter 11.
If you are considering entering into the process of filing for Chapter 11 bankruptcy please contact our office. We will begin by counseling you in the bankruptcy options available to you. We will take into consideration all of your own unique factors. We never rush into decisions, but strive to keep you informed as we guide you through the process. Our work is tailored to fit you exactly. As local Southfield bankruptcy lawyers, we are committed to providing our community with outstanding legal advocacy and counseling. We emphasize integrity and professionalism in all we do. You can trust us to provide you with knowledge and resources. Don’t let the trouble your business is facing be the end of the road for you. Talk to us about the options available to you.
Speak to a representative by phone: (248)809-1395