If your business is struggling, you may be wondering if Chapter 11 bankruptcy is the right option for you. This type of bankruptcy can be complex, so it’s essential to understand how it works before making any decisions.
This Blog Post Will Discuss The Basics Of Chapter 11 Bankruptcy And Help You Decide If It’s The Right Choice For Your Maryland Business.
What is Chapter 11 Bankruptcy: How Does it Work
Chapter 11 bankruptcy is a legal process that allows businesses to reorganize their finances and restructure their debts. It can be used by businesses of all sizes but is most commonly used by large businesses.
Under Chapter 11, the business’s assets are protected from creditors, and it is given time to develop a plan to repay its debts. However, the court must approve this plan before it can effect.
Chapter 11 bankruptcy can be a complex and lengthy process, so it’s essential to seek the advice of an experienced Maryland business attorney before filing for Chapter 11 bankruptcy.
Expert bankruptcy attorneys can help you navigate the process and ensure that your rights are protected.
Steps to Filing Chapter 11
The first step is filing a petition with your district bankruptcy court. The petitioner must be either the debtor, a voluntary joint petitioner, or an involuntary petitioner. The petition must include:
–A list of creditors and how much each is owed
-A schedule of assets and liabilities
-A statement of financial affairs
-A disclosure of the debtor’s income and expenditures for the last 60 days before filing (or for such a long period that the court may permit)
-Copies of tax returns for the last two years (or for such a long period that the court may permit)
-Documentation supporting any claim of exemption from property seizure by creditors.
After the petition is filed, the court will issue an order for relief, which sets forth a timetable for the debtor to file certain documents and hold creditors’ meetings. The debtor must also file a reorganization plan within 120 days of filing the petition.
Benefits of Hiring a Lawyer
Here are some reasons to choose Palm Beach County Chapter 11 bankruptcy attorneys:
-You will be able to keep your business running during bankruptcy.
-Your lawyer can help you negotiate with creditors.
-You may be able to reorganize your business and get out of debt.
-Your lawyer can help you understand the bankruptcy process and what options are available to you.
Conclusion
Chapter 11 bankruptcy is a process that allows a business to reorganize its debt and continue operating. It can be an effective way to keep a business afloat during tough times, but it’s essential to understand how the process works before filing. Lawyers can be a valuable resource in this regard.
