Filing For Chapter 11 Bankruptcy
Determining which type of bankruptcy is right for you is an important and sometimes difficult decision, but our Southfield, MI Chapter 11 bankruptcy lawyer can help make the process easier for you. A bankruptcy lawyer will consult with you on your situation and help you make an informed decision about the best path forward for you.
If you are the owner of a business that is facing bankruptcy, then Chapter 11 bankruptcy may be the right step for you to take. To discuss your situation and determine if Chapter 11 is right for you, contact Gudeman & Associates, P.C. today to schedule a consultation.
The Process of Chapter 11 Bankruptcy
Chapter 11 bankruptcy is often referred to as “reorganization bankruptcy.” This type of bankruptcy is typically used by businesses to restructure their debts and assets. It allows a business to remain in operation during restructuring under the supervision of a court.
After filing a petition for Chapter 11 bankruptcy, an automatic stay is put in place. This temporarily halts all collections, foreclosures, and legal proceedings against the business. The debtor continues to operate their business under the supervision of the bankruptcy court while they develop a reorganization plan.
The Reorganization Plan
A reorganization plan is a plan that sets forth how the business will repay debts. This plan may include renegotiating debts, downsizing, liquidating assets, or other strategies that are best for your business’ specific situation. The plan must be approved by the bankruptcy court and must include fair terms for all creditors. Our Southfield Chapter 11 bankruptcy lawyer can help you craft your reorganization plan in keeping with the best interests for your business and an understanding of what the court will and will not approve. Creating a reorganization plan involved complicated discussions with creditors. Ensuring that they accept and approve of your plan is crucial when filing for Chapter 11. A lawyer can also assist with these complex negotiations.
The Benefit of Chapter 11 Bankruptcy
While the process of filing for Chapter 11 bankruptcy is complex, the opportunity to restructure and reset your financial standing may be worth it for your business. It is a chance to reduce financial hardships and refocus on profits that can potentially save your business during a time of financial hardship. Carefully considering the long-term costs of filing for bankruptcy is important when considering filing for Chapter 11. Our Southfield Chapter 11 bankruptcy lawyer can help you determine if this is the right step for you.
The Importance of Legal Representation
With a decision as impactful as filing for bankruptcy, receiving as much guidance and assistance as you can is important. Our Chapter 11 bankruptcy lawyer is experienced in helping business owners determine the right path for them and assisting them with filing for Chapter 11. We understand the gravity of this decision for you and your business, and we will work hard to serve not only as a source of legal knowledge but as a source of comfort and advice as you look towards a better future for your business. To learn more about how we can help you, contact Gudeman & Associates, P.C. today.
