The attorneys at The Lee Law Firm have many years of experiencing helping people reorganize their debts and repay creditors. We can also help businesses gain control over their finances and repay their debts, leaving them free to return to profitability. The Lee Law Firm wants to see every local business owner succeed.
Chapter 11 Bankruptcy
Filing for Chapter 11 bankruptcy is business has one goal: rehabilitation of finances and organization of debt. Many businesses seek Chapter 11 protection in order to remain in operation as they work towards repaying their debts to creditors. In most cases, businesses are able to obtain a repayment plan that allows them to satisfy their debts with creditors while also maintaining a level of profitability.
Filing for Chapter 11 protection rather than filing for Chapter 7 does not typically put the business assets at risk. Since payments are being made to creditors in a Chapter 11 case, there is no need for asset liquidation. Another benefit of Chapter 11 is the type of debts that can resolved through the case. Debts such as taxes, fraudulently obtained income or debts owed due to company negligence are eligible to be reorganized under Chapter 11, whereas these debts cannot be managed through a business Chapter 7 case.
Special Considerations
There are a few important business bankruptcy considerations that should be reviewed before any business decides to file for bankruptcy. Bankruptcy proceedings can vary by business type and how a bankruptcy case is pursued for a sole proprietorship may be vastly different than with a corporation.