Boca Raton Chapter 11 Bankruptcy Lawyer
When most people consider bankruptcy, they think of a Chapter 7 liquidation or Chapter 13 repayment plan. But there is another type of bankruptcy known as Chapter 11, which is popular among businesses that need to reorganize their operations while repaying their debts in a more controlled fashion. In other words, Chapter 11 allows a business to keep their doors open while attempting to negotiate a better deal with their creditors.
Chapter 11 bankruptcies are inherently more complex than the typical Chapter 7 or Chapter 13 filing. For this reason, it is imperative to work with a qualified Boca Raton Chapter 11 bankruptcy lawyer who understands the system and knows how to successfully guide a business through the process. At Nowack & Olson, we have helped many small and large businesses reorganize and emerge from Chapter 11 in a stronger position.
Dealing with Creditors and the Bankruptcy Court in Chapter 11
Chapter 11 is actually available to both businesses and individuals, although it is more commonly used by the former. Unlike other bankruptcies where the debtor’s non-exempt assets are turned over to a court-appointed trustee, in Chapter 11 the business or individual serves as a “debtor in possession.” This means the debtor keeps all of their assets during the bankruptcy process, albeit under strict court supervision.
However, with continued possession includes meeting certain responsibilities. This includes preparing and presenting a Chapter 11 plan to creditors and the court. The plan must offer specifics on how the business plans to reorganize–often by reducing and restructuring existing operations–while making a good-faith effort to repay creditors in a “fair and equitable” manner. This does not necessarily mean all creditors must be repaid. But the plan must convince a bankruptcy judge that it is in the “best interest of the creditors,” and that it would not make more sense to dismiss the case or convert the matter to a Chapter 7 liquidation.
Normally, a voluntary Chapter 11 filer has the exclusive right to file a bankruptcy plan within the first four months of the case. After that, the creditors or other third parties may propose their own alternative plans. The creditors may also file objections to the debtor’s plan. Ultimately, it is up to the judge to accept or “confirm” a final reorganization plan after taking all factors and arguments into account.
Contact a Boca Raton Chapter 11 Bankruptcy Lawyer Today
Getting approval for a Chapter 11 plan is no small task. It involves dealing with a number of parties–and their attorneys–and requires an intimate familiarity with federal bankruptcy laws and procedures. To put it bluntly, a Chapter 11 bankruptcy is something no business or individual should ever attempt on their own. You need a qualified Boca Raton Chapter 11 bankruptcy lawyer to guide you and your business through the process from start to finish.
Contact a Boca Raton Chapter 11 Bankruptcy Lawyer at Nowack & Olson today at 866-907-2970 to schedule a free initial consultation with a member of our team today. All consultations are confidential, and there is no obligation to proceed with a bankruptcy case if it is not in your best interests.