Chapter 11 Bankruptcy in Fort Lauderdale
What is Chapter 11 Bankruptcy?
According to Chapter 11 bankruptcy, a debtor can restructure finances using
a reorganization plan approved by the bankruptcy court.
Chapter 11 can help balance a debtor’s income and expenses, continue
in operation, and regain profitability by reducing obligations, as well
as modifying payment terms. Additionally, a debtor may sell some or all
of its assets in order to pay back what it owes or downsize its business,
The Benefits of Chapter 11
Chapter 11 is part of the U.S. Bankruptcy Code. While it is constantly
covered in the news when major corporations experience financial strife
and turn to the bankruptcy courts for help, most Chapter 11 cases are
filed by business and companies who are not household names.
The following are the special arrangements for small business owners in
Chapter 11 cases:
The bankruptcy court can order that no creditors’ committee be appointed. A creditor’s committee can obtain lawyers and other professionals
at the expense of the debtor, which can increase the cost of Chapter 11
Small businesses are subject to certain reporting and filing requirements
that are not imposed on other Chapter 11 debtors. For example, a small business debt needs to attach its most recently prepared
balance sheet, federal tax return, statement of operations, and cash flow
statement to its bankruptcy petition when it files for Chapter 11.
Small business debtors have only 300 days to propose a plan. However, they are offered a longer exclusivity period extension of up
to 180 days to propose a plan. In most cases, there is no deadline for
filing a Chapter 11 plan unless established by the court.
More oversight by the U.S. Trustee Oversight. The U.S. Trustee’s office is the agency which oversees bankruptcy
cases on behalf of the Department of Justice.
Call (844) 344-4813 for Experienced Legal Representation Today!
Loan Lawyers we can thoroughly review your case and determine if Chapter 11 bankruptcy
is the best course of action. If you are interested in filing for bankruptcy
schedule a consultation with our Fort Lauderdale bankruptcy lawyer at Loan Lawyers today.
Contact us immediately!