Chapter 11 Bankruptcy Lawyers | Business Reorganization Bankruptcy
How Does Chapter 11 Bankruptcy Work?
A Chapter 11 case is a process. It begins with a consultation, where a licensed Pennsylvania bankruptcy attorney will discuss in depth your unique financial situation, goals, issues and desired outcome.
At Foster Law Offices, LLC we offer ALL potential clients a FREE initial consultation.
Once it is determined that a Chapter 11 filing is the appropriate solution, a voluntary petition is filed with the United States Bankruptcy Court.
In addition to the petition, the Court also requires debtors to file the following financial documents:
- schedules of assets and liabilities;
- a schedule of current income and expenditures;
- a schedule of executory contracts and unexpired leases;
- a statement of financial affairs.
- a written disclosure statements
- plan of reorganization
There is no need to worry about the complexity of these documents, however, as Foster Law Offices, LLC will work with you to gather the information necessary to complete these documents and file them in accordance with the guidelines set forth by the Court.
As for continuing your daily operations, in most cases, the debtor will keep possession and control of its assets while undergoing a reorganization under Chapter 11 of the Bankruptcy Code. The ultimate goal of the Chapter 11 plan is to have creditors agree on a binding repayment plan, one which is mutually beneficial to both the debtor and key creditors.
What information does the voluntary petition include?
The voluntary petition includes standard information including, but not limited to, the debtor’s name(s), tax identification number, location of principal assets and request for relief under Chapter 11 of the United States Bankruptcy Code.
What Is Chapter 11 Bankruptcy?
Chapter 11 bankruptcy is a form of bankruptcy reorganization. Individuals, corporations and partnerships can file for Chapter 11 bankruptcy. In fact, it is the usual choice for large and even small businesses seeking to restructure debt as there are no debt limits.
Benefits of Chapter 11 Bankruptcy
There are several benefits of filing for Chapter 11 Bankruptcy. The Chapter 11 debtor usually remains in possession of its assets, and operates the business under the supervision of the United States Bankruptcy Court and for the benefit of creditors.
A Trustee may be appointed, however, if the debtor’s management skills are lacking during the term of the plan. It is important to note that a Chapter 11 bankruptcy plan must be approved or affirmed by creditors, whose “votes” and “class” is based upon the characteristics of their claims. G
If a plan cannot get the “votes” to confirm a plan, there are other alternatives, but the likelihood of success may decrease. Chapter 11 bankruptcy plans tend to be very flexible. In other words, each case is unique; there are certainly no “routine” Chapter 11 cases.
Given the complexity of crafting and executing a successful Chapter 11 plan of reorganization, it is highly recommended that creative and experienced counsel be retained for such litigation. Foster Law Offices, LLC can assist individuals, partnerships and corporations in Pennsylvania with filing for Chapter 11 bankruptcy. For more information, contact Foster Law Offices to schedule a consultation.
How Do I File For A Chapter 11 Bankruptcy?
Filing for bankruptcy can be complex, as there are several rules and procedures involved. The first step in filing for Chapter 11 Bankruptcy is to contact a licensed Pennsylvania bankruptcy attorney. Contact Foster Law Offices today for your free, personalized consultation. Our firm can provide a creative Chapter 11 solution to even the most complex business problem.
If you are looking for more information regarding filing for Chapter 11 bankruptcy – check out the United States Bankruptcy Courts’ website for more information.