Monmouth County Bankruptcy Attorneys explain Chapter 11

Bankruptcy Lawyer

Chapter 11 is a chapter of the United States Bankruptcy Code. It is referred to as a “reorganization” bankruptcy.  Chapter 11 is available to individuals, corporate, and partnerships. It is the typical bankruptcy choice for large businesses. However It has no limits on the amount of debt. Through this chapter, businesses can restructure their debt. Further, they can start operations again. Chapter 11 is the most flexible bankruptcy law. A chapter 11 bankruptcy lawyer can help you file bankruptcy. Ask for free consultation!

Who can File Chapter 11 Bankruptcy?

When a business is unable to service its debt or pay its creditors, then business or its creditors can file this chapter. It is done with a federal bankruptcy court or protection under either Chapter 7 or Chapter 11. Contact us now so, we can give the right plan to you.

How to File Chapter 11 Bankruptcy?

A Chapter 11 case begins with the filing of a petition with the bankruptcy court serving the area where the debtor has a residence. For more information visits here.

Under Chapter 11, votes of creditors affirm a reorganization plan. Management may continue to run the business, but the bankruptcy court must approve all significant business decisions.

While declaring bankruptcy can be a difficult decision and can seem like you’re facing a complicated process; our experienced attorneys are here to help. We have a team of bankruptcy lawyers who can file Chapter 11 bankruptcy for you. As a result, you will be able to reorganize your business and make a new plan for operating your business going forward. Call for a free consultation to discuss your situation. So we can make a plan that is right for you.

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Generally, a written disclosure statement and a plan of reorganization must be filed with the court. The disclosure statement is a document that must contain information concerning the assets, liabilities, and business affairs of the debtor sufficient to enable a creditor to make an informed judgment about the debtor’s plan of reorganization. The contents of the plan must include a classification of claims and must specify how each class of claims will be treated under the plan.
As with cases under other chapters of the Bankruptcy Code, a stay of creditor actions against the chapter 11 debtor automatically goes into effect when the bankruptcy petition is filed. The automatic stay provides a period of time in which all judgments, collection activities, foreclosures, and repossessions of property are suspended and may not be pursued by the creditors on any debt or claim that arose before the filing of the bankruptcy petition. The stay provides a breathing spell for the debtor, during which negotiations can take place to try to resolve the difficulties in the debtor’s financial situation.
As with cases under other chapters of the Bankruptcy Code, a stay of creditor actions against the chapter 11 debtor automatically goes into effect when the bankruptcy petition is filed. The automatic stay provides a period of time in which all judgments, collection activities, foreclosures, and repossessions of property are suspended and may not be pursued by the creditors on any debt or claim that arose before the filing of the bankruptcy petition. The stay provides a breathing spell for the debtor, during which negotiations can take place to try to resolve the difficulties in the debtor’s financial situation.