FORT LAUDERDALE CHAPTER 11 BANKRUPTCY ATTORNEY
FILING FOR CHAPTER 11 BANKRUPTCY IN SOUTH FLORIDA
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, if necessary.
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 substantially.
- 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.