Chapter 11 Bankruptcy
Chapter 7 and Chapter 13 are the most common types of bankruptcies, but, under certain circumstances, there is another type of more appropriate reorganization bankruptcy for both individuals and companies. Typically, companies who are facing overwhelming amounts of financial burdens will resort to a Chapter 11 Bankruptcy. A Chapter 11 bankruptcy is used to restructure a bankrupt business’s debts into a payment plan that is manageable. Although a Chapter 11 Bankruptcy is primarily intended for businesses, in rare instances, consumers can qualify and file for Chapter 11 as well.
One of the most distinct elements of a Chapter 11 Bankruptcy is that it allows the debtor to propose a plan for profitability. Unlike other bankruptcies, which center on liquidating assets and closing businesses for good, a Chapter 11’s goal is to recharge the business. After a business’s assets and liabilities are analyzed, the business will propose a plan to restructure its debts in a way that will allow the business to continue operating, ideally at a profitable level. Because of everything at stake and the very nature of what it sets out to accomplish, a Chapter 11 bankruptcy is the most complicated bankruptcy. When dealing with angry creditors, investors who are eager to be repaid their money, and teams of greedy attorneys who will stop at nothing to liquidate your assets for their clients, it’s important to have experience on your side. Think of a Chapter 11 Bankruptcy as open-heart surgery on your finances. There are so many intricacies involved in a Chapter 11 and absolutely no room for error. Fiallo Law will work tediously, paying close attention-to-detail on every aspect of your case stopping at nothing to aggressively fight for your rights and protect your assets.