Facing bankruptcy can be stressful. However, it isn’t any more stressful than dealing with letters and phone calls from your creditors. Not to mention trying to figure out how to make ends meet. While you can’t change the past, you can learn from it. One of the best things you can do is learn from your mistakes and take your new found knowledge with you into the future. Chapter 11 bankruptcy involves reorganizing your assets and redistributing the assets of your business after you have filed for bankruptcy protection under title 11 of the United States Bankruptcy Code. Like many of the other bankruptcy codes, it offers you protection when you are unable to pay your debts. Chapter 11 bankruptcy is available to businesses, corporations, and individuals. Most commonly, it is filed by businesses rather than individuals.
The process of filing Chapter 11 bankruptcy usually begins by filing a petition for bankruptcy in court. Many times this aspect is handled by a chapter 11 bankruptcy attorney. These cases are usually initiated by the person or corporation themselves, rather than it being forced upon them. After the filing, the court has to find that certain criteria are met. They must find that the proposed plan is feasible, proposed under good faith, in the best interest of the creditors, and fair and equitable. After the bankruptcy filing is accepted, the debtor has four months to propose a restructuring of their company and its assets. This allows them to keep as much control over their business as possible, while still being protected under the federal bankruptcy code. The whole process is confusing and lengthy, which is why many choose to have a chapter 11 bankruptcy attorney to take charge of the proceedings.
An attorney can handle the legal proceedings and work with you create the best plan for you and your business. Bankruptcy is a difficult and stressful process, but with the right process and guidance, you may find yourself in a place that you are happy to be in sooner rather than later. Contact Ledford and Wu with your bankruptcy questions. Bankruptcy is not the end; it is actually a chance to have a fresh new start.