The Chapter 11 Bankruptcy Process
One of the key elements of a Chapter 11 bankruptcy is that the bankruptcy filing and the reorganization must be in the best interests of the creditors.
Once a Chapter 11 case is initiated, the court will take over and be responsible for making decisions about the debtor’s operations, including any sales of assets or property, agreements related to leases, closing down business operations, expanding business operations, taking out new loans or forms of credit, monitoring any loans or existing agreements with vendors or contractors, and paying fees to certain professionals, such as an attorney. Typically, the creditors and other interested parties will submit their opinions to the bankruptcy court related to the above.
Within four months of filing for bankruptcy, the debtor must propose a reorganization plan; if they do not, the creditors have the right to propose the plan. Once a plan has been proposed, it must be approved by the bankruptcy court. Again, the plan must be in the best interests of the creditors. It must also be fair and equitable.
The Chapter 11 bankruptcy process may be effective, leading to a reorganization and a repayment of debts. In many cases, though, the bankruptcy is ineffective. It is also possible that the case will be dismissed (with approval from the bankruptcy court), or will be converted into a Chapter 7 bankruptcy.
Do I Need a Chapter 11 Bankruptcy Attorney?
Working with an attorney if you are pursuing a Chapter 11 bankruptcy is strongly recommended. The first thing that your attorney will do is review your financial situation and advise you of your options, including alternative to bankruptcy–such as debt consolidation–and other types of bankruptcy filings, such as a Chapter 7 or Chapter 13 bankruptcy. If bankruptcy is the best option, your attorney can gather important financial documents, prepare your petition for bankruptcy, advise you in structuring your reorganization plan, represent you in court and in negotiations with creditors, and more.
Call the Lawrence Law Offices Today
People may seek divorce because they are experiencing extreme financial stress, or a divorce may lead to serious financial woes. In either case, if filing for bankruptcy is an option that you are considering, our Columbus Chapter 11 bankruptcy lawyer can help. Our attorney will provide you with accurate, competent legal advice and work hard to make sure that you understand your options, your rights, and the best strategy for protecting your future. To learn more or to schedule a consultation, please contact our law firm today or send us a message at your convenience.