Get the facts when filing for your Chapter 11 Business Bankruptcy case!
Looking for Business Bankruptcy information? Chapter 11 Bankruptcy may be the best choice to reorganize your business debt. Whatever the circumstances, your best strategy is to meet and confer with an experienced attorney in business debt relief matters. Attorney, Mark Wesbrooks, is Board Certified in the area of Creditors’ Rights Law by the American Board of Certification, having handled thousands of Bankruptcy and Debt Relief cases in Arizona, many of which involved small businesses. Chapter 11 allows restructuring business debt that needs to be managed, while affording a discharge of unsecured debts that need to be eliminated. A consultation with an experienced attorney will help you understand the difference between Chapter 7, Chapter 11 and Chapter 13 Bankruptcy and knowing what is the best for you and your business. Our law firm offers FREE consultations and affordable payment options on any Bankruptcy case.Understanding the laws of Chapter 11 Bankruptcy, and knowing that you have a qualified and experienced Law Firm on your side, makes the difference in a proper reorganization.
Chapter 11 Bankruptcy permits a business to remain in business, while freeing the business up from its creditors. A plan of reorganization can be presented that modifies the rights of secured creditors so that they may have to take lower amounts at lower interest rates over a longer period of time. All assets remain in the possession of the business. The business can avoid any loan by surrendering collateral, essentially getting out of “bad” decisions to allow the business to operate profitably. Chapter 11 is also available for individuals who have too much debt to qualify for Chapter 13. Chapter 11 is typically most popular for business operating via a Limited Liability Company (LLC) or Corporation. Chapter 11 has been used to shed debt by many well known corporations, such as GM and United Airlines. Unlike Chapter 13 Bankruptcy, Chapter 11 typically has an unlimited debt ceiling. Chapter 11 may sometimes be avoided by early workouts and negotiations. Business creditors are far more likely to negotiate under threat of a Chapter 11 being filed.
Lets take a look at a case with a client who who owns a Limited Liability Company or Cooperation that is located in Arizona. This client would possibly be eligible to file for Chapter 11 Bankruptcy, however this type of Bankruptcy can be expensive, risky, complex and very time consuming. If the business begins with early negotiation, Chapter 11 may be avoided. If creditors will not negotiate, Chapter 11 may be filed. Early contact by an attorney, Board Certified in the area of Creditors’ Rights Law (American Board of Certification) will convince creditors that compromise is necessary to avoid a Bankruptcy filing.
Whichever type of Business Bankruptcy that is needed, your attorney will need basic information.
Here is a shortened list of the basic stuff you should be sure to have with you:
- A summary of the debts you have (i.e. secured loans – land, vehicles & equipment; tax claims – IRS or Arizona Department of Revenue), and other general unsecured creditors. Also, it is important to understand any leases and whether or not debts are behind.
- A general understanding of your business. Income and expense sheets (Profit & Loss) will demonstrate income of the business to help in understanding how much the debt is affecting performance.
- A summary of all of your property owned, leased or financed by the business.
- A list of monthly expenses of the business.