11 Bankruptcy Lawyers | Business Reorganization Bankruptcy
What Is Chapter 11 Bankruptcy?
Chapter 11 bankruptcy is a form of bankruptcy reorganization available to individuals, corporations and partnerships. It is the usual choice for large and even small businesses seeking to restructure debt as there are no debt limits.
The Chapter 11 debtor usually remains in possession of its assets, and operates the business under the supervision of the court and for the benefit of creditors. The debtor in possession is a fiduciary for the creditors.
A Trustee may be appointed if the debtor’s management skills are lacking during the term of the plan. A Chapter 11 bankruptcy plan must be approved or affirmed by creditors, whose “votes” and “class” is based upon the characteristics of their claims.
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, meaning there are certainly no “routine” Chapter 11 cases.
It is highly recommended that creative and experienced counsel be retained for such litigation.
How Does Chapter 11 Bankruptcy Work?
In general, the company usually remains in possession of business assets, and operates the under the supervision of the Court for the benefit of creditors. The goal of the Chapter 11 plan is to have creditors agree on a binding repayment plan. Chapter 11 is generally the most flexible of all the chapters.
Foster Law Offices can provide a creative Chapter 11 solution to even the most complex business problem.
How Do I File For A Chapter 11 Bankruptcy?
Filing for bankruptcy can be complex, as there are several rules and procedures involved. Contact Foster Law Offices today for your free, personalized consultation.