There are several benefits of filing for bankruptcy under this code. First, the 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 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. 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. For more information, contact Foster Law Offices to schedule a consultation.