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Plano Bankruptcy - Chapter 11 Bankruptcy

Bankruptcy under Chapter 11 of the Bankruptcy Code is often referred to as "business reorganization." Chapter 11 is available to individuals but is rarely used by them. Chapter 11 allows qualified individuals and businesses to reorganize their obligations and pay their debts over time. Businesses that choose to take advantage of Chapter 11 relief continue to operate their business while paying their debts.

A business debtor begins the Chapter 11 bankruptcy process by filing a petition with its local bankruptcy court. Once the debtor files its Chapter 11 petition, an "automatic stay" goes into effect which prohibits the business’ creditors from making any attempt to collect their debt, including attempting foreclosure and repossession. Along with the filing of the petition, or shortly thereafter, the debtor files various written "schedules" and "statements" to inform the Court of its outstanding debts, its current revenue and expenses, any existing contracts, any current or potential lawsuits, and any recent asset transfers. Once that information has been submitted, the debtor proposes a repayment plan to the Court. Under Chapter 11, the creditors are able to vote on the debtor’s proposal. It can take anywhere from six months to a year or more before a repayment schedule is approved and in place. Under the schedule, the debtor must generally pay all tax obligations and secured debts in full, plus interest, and at least a portion of unsecured debts. Once approved, the debtor may have up to six years to repay its obligations.

A Chapter 11 Bankruptcy filing has no initial qualifying requirements in terms of the amount of debt that a debtor is required to owe or the type of entity that the debtor needs to be. There are various benefits that a debtor gains from a Chapter 11 Bankruptcy filing. A business in serious financial difficulty may continue to operate without danger of immediate closure by its creditors via lawsuits, enforcement of judgments, liens as well as turnover orders. This breathing spell is supposed to provide the debtor with an opportunity to attempt the successful reorganization of its financial affairs. The debtor’s breathing spell lasts until the statutory time to propose a plan of reorganization which is usually 120 days or until the automatic stay if lifted by a creditor.

Chapter 11 Bankruptcy can be an excellent method to deal with the financial problems of companies that may have encountered excessive debts, numerous debt based lawsuits, liquidity problems, temporary down turns in business or even the need to reject certain leases or contracts. Reorganization of business debt under Chapter 11 may at times be a much better option to both the Debtor and its Creditors as opposed to liquidation under Chapter 7 Bankruptcy.

If a company is facing imminent or irreparable financial damage due to the collection efforts of creditors, or simply has hit a few economic bumps but wants or needs to stay in business, there are alternatives to Chapter 11 Bankruptcy. Such options include out of court workouts and settlement arrangements, assignments for the benefit of creditors, as well as receiverships and forbearance agreements. Depending on the facts of a particular case alternatives to Chapter 11 Bankruptcy may not be viable.

Chapter 11 bankruptcies are very complex, time consuming, oftentimes expensive and allow the Court and the creditors to be actively involved in the debtors’ financial affairs. Businesses considering seeking bankruptcy relief under Chapter 11 must utilize an attorney experienced in handling Chapter 11 cases.

If you or your business is overwhelmed by debt, contact The Law Offices Of R.J.Atkinson,LLC today. With offices in Houston, Austin, San Antonio, and Dallas, we can help you decide if Chapter 11 bankruptcy is for you or your company. Call 1-800-436-9056 or contact us for a free initial consultation.

 

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Bankruptcy Lawyer – Attorney RJ Atkinson provides Chapter 7, 11, 13, Affordable Debt Relief, Debt Consolidation in Plano.
Filing Bankruptcy can sometimes be the fastest way to get out of debt and may be the most affordable way to get a fresh financial start. Chapter 7 Bankruptcy can quickly wipe out your debts, increase your credit score, stop wage garnishments, get rid of credit card debt, eliminate medical bills, stop payday loans, stop bill collectors, erase negative credit reporting, and reestablish new credit after bankruptcy. RJ Atkinson – Bankruptcy Lawyer have payment plans to make filing Chapter 7 and Chapter 13 Bankruptcy affordable which include low cost flat fees for Chapter 7 that may be considered the cheapest bankruptcy attorney fees depending on the costs other bankruptcy lawyer charge. Chapter 13 Bankruptcy can save your home from foreclosure, save your car from repossession, lower monthly payments, reduce interest rates, get rid of late fees, reduce credit card interest, payoff high credit card debt, raise your credit score, stop creditor harassment, get rid of debt, reduce debt, eliminate creditor calls at work, stop collection calls, start over financially, discharge debts and/or be debt free in 3 to 5 years. IRS tax problems, tax levies, wage garnishments, back taxes, payroll taxes, income taxes can often be handled in Chapter 13 bankruptcy. Divorce/Bankruptcy – past due child support arrears, alimony, spousal support, and divorce debt can often be handled in chapter 13 bankruptcy. The Law Offices of RJ Atkinson handles debt consolidation, loan modifications, credit card debt settlement, debt negotiation, lawsuit defense, IRS problems, credit card lawsuits, TROs temporary restraining orders to foreclosure, forbearance agreements to foreclosure, FDCPA Fair Debt Collection Practices Act lawsuits, FCRA Fair Credit Reporting Act lawsuits, credit report disputes, debt collection lawsuits, adversary complaints in bankruptcy, bankruptcies, foreclosure workouts, mortgage short sales, real estate property tax disputes, civil litigation, commercial litigation, tax lawsuits, small business bankruptcy, corporate bankruptcy, business creditor representation, and most every kind of debt related issue or financially based legal problem on a case by case basis.
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