Important Facts About Chapter 11 Bankruptcy
If you are a business owner and are experiencing financial hardships, don’t throw in the towel, consider filing with a Chapter 11 Bankruptcy Lawyer. Chapter 11 bankruptcies are available whether you have a corporation, sole proprietorship, or a partnership.
Chapter 11 bankruptcies allow you to keep your business in service but your operating cost and revenues will be monitored by a trustee; a person who will manage your interest. The trustee is responsible for two things; protecting your business from creditors, who want to sue, freeze your assets or ruin your business and ensuring the creditors they will be paid justly and you won’t run off with earnings without paying them.
While most bankruptcies releases all credit, chapter 11 is used to reorganize the way you plan on paying off your debts. The reason for restructuring is in the hopes that your business will grow in the future and a better capability to make payment to the people you owe.A Chapter 11 Bankruptcy Lawyer can often create a more prolific between you and your creditor, as you both have a risk in the outcome of negotiations. An added bonus to this plan is you will be immediately relieved, once you file bankruptcy, to any creditors.
Having a successful chapter 11 depends greatly on your ability to keep on making payments you and your creditor have previously agreed upon. This means your establishment must continue functioning if this the way you intend to generate revenue needed to satisfy your financial responsibilities.
Hiring a reputable and experienced bankruptcy attorney, such as Sean C. Paul Attorney at Law will help to ensure your assets are protected. After you file your chapter 11 you will be allowed to file a reorganization plan. Once the plan has been filed you have 180 days to convince the creditors to accept the payment arrangement that you have submitted. If you happen to miss the allocated deadline, your creditors will have the opportunity to set forth their own reorganization plan for evaluation.
Once a plan has been approved by both parties, it will then be brought before the bankruptcy court for evaluation of its feasibility. If the court accepts the arrangements, the debt will be discharged. It is imperative for a business to continue with the required payments after the release.
