What is Chapter 11 bankruptcy?
Chapter 11 bankruptcy is available to any individual, husband and wife, partnership or corporation. There is a fee to declare Chapter 11 bankruptcy. The debtor is allowed to continue to operate his or her business while working on a plan to restructure debts or sell assets to pay creditors. A Chapter 11 debtor must pay its creditors more than they would receive under Chapter 7 bankruptcy. A Chapter 11 plan must be approved by the bankruptcy court. The creditors will have a chance to vote on whether the court should approved the plan. For legal advice see your lawyer. If you need help finding a lawyer, call The Missouri Bar Lawyer Referral Service at 573/636-3635 In St.
Chapter 11 bankruptcy is a form of corporate financial reorganization in which a company’s assets get sold off to pay creditors. In some cases, Chapter 11 bankruptcy allows companies to continue to function. The theory here is that businesses that are allowed to continue to operate will generate revenue, protect jobs, and otherwise heal creditor wounds. Scraping and selling businesses for their parts, on the other hand, may lead to less than optimal utilization of company resources. Chapter 11 bankruptcy filings may be “strategic”. In other words, management may wish to reorganize for political reasons, not simply for the sake of balancing books. Occasionally, individuals may be able to file for Chapter 11 bankruptcy. However, the vast majority of consumer filers end up applying for bankruptcy under the Chapter 7 or Chapter 13 Titles. There is also a Chapter 15 Title bankruptcy, which handles international bankruptcy disputes, as well as a Chapter 12 Title, which deals with farm and fi
Chapter 11 bankruptcy cases are the big “reorganization” cases you see in the newspaper or hear about on TV news (Sears, K-Mart, United Airlines, Enron and a lot of other big companies have had Chapter 11 bankruptcies). Chapter 11 bankruptcy is prohibitively expensive for individuals and small businesses, and the Bankruptcy Law Firm tries to avoid using Chapter 11 bankruptcy for individuals and small businesses with debt problems, as Chapter 11 is usually NOT cost-effective for individuals or small businesses, and usually is NOT the best choice for individuals and small businesses. The Bankruptcy Law Firm does represent CREDITORS in all aspects of Chapter 11 bankruptcy cases throughout California, as well as representing CREDITORS in all aspects of Chapter 7 and Chapter 13 cases.
