Chapter 11 Bankruptcy
Strategic debt reorganization for businesses and high-debt individuals
What is Chapter 11 Bankruptcy?
Chapter 11 bankruptcy provides a way for businesses and some individuals to reorganize their finances while continuing to operate. It is a powerful tool for restructuring debts, negotiating with creditors, and ultimately creating a sustainable path forward. Unlike other forms of bankruptcy, it allows the debtor to remain in control of their assets and operations as a “debtor-in-possession.”
Eligibility for Chapter 11
For Businesses
Corporations, partnerships, and sole proprietorships are eligible. It's often used by large companies but is also available to small businesses. The goal is to propose a plan of reorganization to keep the business alive and pay creditors over time.
For Individuals
Individuals, especially those with significant debts and assets that exceed the limits for Chapter 13, can also file for Chapter 11. This is common for those who own multiple properties or have complex financial situations.
The Chapter 11 Process
1. Filing the Petition
The case begins with filing a petition with the bankruptcy court.
2. Creditors' Committee
A committee of unsecured creditors is usually appointed to represent all creditors' interests.
3. Reorganization Plan
The debtor has an exclusive period to file a reorganization plan, which creditors vote on.
4. Confirmation
The court must confirm the plan. Once confirmed, the debtor makes payments according to the plan.
Potential Outcomes
A successful Chapter 11 bankruptcy allows a business to continue operating, preserving jobs and value. It enables the restructuring of debts into manageable payments, discharge of certain debts, and provides the breathing room needed to return to profitability. For individuals, it can protect assets from liquidation while creating a feasible repayment plan.
JusticeBankruptcy's Expertise in Chapter 11
Chapter 11 cases are complex and require experienced legal guidance. Our team brings over 100 years of combined expertise to help you navigate this sophisticated process:
Complex Filings
Expert preparation of detailed financial disclosures and reorganization plans.
Creditor Negotiations
Strategic negotiation to achieve favorable restructuring terms.
Sustainable Plans
Realistic reorganization strategies focused on long-term viability.
Business Continuity
Minimize disruption to operations, employees, and stakeholders.
Ready to Take Control of Your Financial Future?
With over 100 years of combined legal experience, our team is ready to guide you through every step of the bankruptcy process. Start with an affordable $100 consultation.