Chapter 11 Bankruptcy
The U.S. Bankruptcy Code provides a very powerful legal solution for businesses facing insolvency. By allowing individuals and businesses to reorganize financially and to regain financial stability, Chapter 11 bankruptcy offers protection from creditors for circumstances which are not best suited for Chapter 7 bankruptcy or Chapter 13 bankruptcy and for those with debts in excess of those allowed in Chapter 13. Chapter 11 bankruptcy is available to individuals, sole proprietorships, corporations, both C Corps and Sub S, limited liability companies and partnerships. Threatened with foreclosure by your bank? IRS or State collection threatening imminent padlocking of your doors or levy on your bank accounts? Bank threatening to accelerate your loans? Consider seeking protection under Chapter 11.
The unique characteristic of Chapter 11 is a provision for business reorganization. Unlike Chapter 7 bankruptcy which terminates a business’s existence and liquidates its assets for the benefit of its creditors, in Chapter 11, the petitioner typically proposes a plan of reorganization to stay in business, while a bankruptcy court oversees the company’s reorganization and protects it during that time. Complete or partial relief may granted by the court for most of the company’s debts and its contracts, allowing the company to shed its debt and even obligations such as leases, employment and labor contracts and other executory contracts. In Chapter 11, it may be possible to reduce the secured portion of debts to the value of the collateral securing the related loans. The difference between the loan amount and the fair market value of the collateral is then treated as unsecured. Typically, unsecured creditors do not fare well in Chapter 11 cases.
Whether your business is considering voluntary filing a petition for a Chapter 11 bankruptcy or your company is being forced to seek reorganization under Chapter 11 by pressure from your creditors, you will be dealing with an intricate process with rigorous legal requirements. Choosing an experienced bankruptcy attorney is critical to provide legal advice, walk you through the legal complexities and, ultimately, protect the interests of your business and its stockholders.
The first consultation with Gudeman & Associates, P.C. is without obligation. If you are looking for a start fresh for your business, Chapter 11 may be the remedy that you are seeking. Find out the truth about Chapter 11 today, have a brighter future tomorrow.
At Gudeman & Associates, P.C. located in Royal Oak, Michigan, we have experience representing a broad range of clients in Chapter 11, including by way of example, small manufacturing companies, individuals with real estate portfolios, small construction related firms and an outdoor advertising company. We understand you may have worn out all other remedies in your attempt to stay in business and need legal aid to evaluate options under the U.S. Bankruptcy Code to provide debt relief. Call us today at 248-546-2800 or email us at email@example.com.