Chapter 11 Corporate Bankruptcy Attorneys in South Florida
Supporting Clients from Offices in Pompano Beach & Miami
Chapter 11 bankruptcy is a
business bankruptcy for those that have high debts and/or high
asset. Chapter 11 is a more complex bankruptcy, but it may be the right decision for you.
Benefits of Chapter 11 for Businesses
Chapter 11 allows filers all the typical benefits of bankruptcy, including debt relief and a stop to collection actions through the automatic stay. However, Chapter 11 offers a specific and significant benefit to businesses.
Mainly, you can continue running your business while completing a Chapter 11 bankruptcy. While other forms of business bankruptcy, like Chapter 7, offer simplified proceedings, the filer will need to turn over their business assets to a bankruptcy trustee. Chapter 11 gives business owners the option to retain control of their businesses.
The Chapter 11 Bankruptcy Process
When filing a Chapter 11 petition with the court, the debtor must also file documentation of the following:
- All assets and liabilities of the business
- Current income and expenses of the business
- Contracts and unexpired business leases
- A statement of financial affairs
With this petition, the debtor can submit their reorganization plan. There is no specific time period for a Chapter 11 case, though it is common for these cases to wrap up within six months to two years.
Subsection V of Chapter 11
Recently, Congress passed Subsection V of Chapter 11, which created a more streamlined approach for certain debtors to undertake the Chapter 11 process. Small businesses debtors may be able to take advantage of this option.
Some benefits of Subsection V include:
- No required disclosure statement
- Typically no creditors' committee
- Only the debtor can file a repayment plan - not creditors or other parties
- Debtors can confirm qualifying plans without acceptance by creditors
Let Us Help You File for Chapter 11
Chapter 11 offers a variety of methods for a debtor to negotiate with creditors and restructure or eliminate obligations. As with all bankruptcies, it is imperative that you speak with an experienced bankruptcy practitioner about filing a Chapter 11 prior to moving forward.
The professionals at Bilu Law are here to guide you through this process to help you get the fresh start that you and your business deserve.