Understanding Chapter 11 Bankruptcy
Chapter 11 is the most flexible type of bankruptcy, but it is also the most complex and challenging. The fact that Chapter 11 offers the debtor so many options in how to proceed makes it difficult to generalize the process but the basics of the subject are relatively simple. To begin with, Chapter 11 is available to both individuals and corporations, but it is generally used by businesses whose debts have spiraled out of control to the point where it is impossible to sustain the economic burden. Chapter 11 involves a reorganization of the business' affairs and assets, with the goal of correcting the problems which led it into debt and achieving a new, more stable financial position in the future.
A corporate debtor can file for liquidation bankruptcy under Chapter 7, but if your goal is to stay in business it is most likely in your best interests to pursue Chapter 11 instead. One of the primary advantages of Chapter 11 is that it allows you to maintain possession of the business under most circumstances. You will only be replaced by the bankruptcy trustee in the event that you fail to act in good faith in following the plan of reorganization. Chapter 11 is similar to Chapter 13 in the fact that it involves a restructuring of the current debt load, but it does not have the same eligibility limits on the amount of debt.
How a Gainesville Bankruptcy Attorney Can Help
If you are planning to declare bankruptcy under Chapter 11, then it is vital that you hire a Gainesville bankruptcy attorney who is prepared to help you navigate the complexities of the situation. At The Law Offices of Justin McMurray, P.A., we have more than a decade of experience and can assist you with achieving a reorganization plan that works in your best interests and makes it possible for you to maintain normal operations during your repayment period. In Chapter 11 the bankruptcy trustee and the committee of creditors will not be on your side, but you can improve your chances of a successful outcome by retaining our services. Contact us now for a free case evaluation to learn more about the process.