Solving Business Debt Problems With Chapter 11
A Chapter 11 bankruptcy is a reorganization process under the Bankruptcy Code that can help distressed businesses and certain individuals. A Chapter 11 bankruptcy is a way of giving businesses and certain individuals who are financially distressed a second chance. At Thompson Law Group, P.C., in Pittsburgh, our attorneys have the knowledge and experience to help your business through the Chapter 11 process.
During a Chapter 11 bankruptcy, debtors have the right to propose plans to reorganize their debts. There is generally no trustee in a Chapter 11 bankruptcy case. Typically, the debtor retains possession of his or her assets so long as certain basic obligations are met. That person is known as the “debtor in possession,” often referred to as the DIP. This means that a business or individual may continue to operate and continue to make important day-to-day decisions, during the reorganization process. So long as certain basic obligations are met, this desirable arrangement should continue throughout the case.
Do I Need To File Chapter 11 Bankruptcy?
People and companies who file Chapter 11 bankruptcy do so to protect their business from slowing or ending operations due to debt collection, foreclosures, lawsuits or repossessions. If someone or a business entity is under threat of losing assets, you may want to file Chapter 11 bankruptcy. The experienced legal professionals at Thompson Law Group, P.C., will help you determine if and when this reorganization process is right for you. If so, we will help you create a restructuring plan that will be designed to address your debt obligations and help set your business back on the right path. An effective reorganization should provide a payment schedule that optimizes to your best interests and fairly balances your current and future income and expenses.
Additionally, while many may not know this, a Chapter 11 reorganization process can also be used to deliver an orderly winding down of a business. Since a Chapter 11 filing immediately stops collection attempts by creditors and preserves ownership of the assets of the filing party, those assets should retain a higher value than if the assets were liquidated. Meanwhile, the filing party has an opportunity to market and sell the property for proper value. This is loosely known as a liquidating plan, except, you remain in control of the handling of these assets.
Making The Bankruptcy Process Smoother
Filing for Chapter 11 bankruptcy can be a difficult time in your life and the lives of your family and others who are affected by your business operations. Our goal at the Thompson Law Group, P.C., is to make this process as simple as possible. Our lawyers’ knowledge of the Bankruptcy Code coupled with our passion for helping people are what makes the Thompson Law Group, P.C., one of the top Chapter 11 bankruptcy firms in Pennsylvania. Call today for a free consultation at 814-451-1125 or by contacting us online and allow us to use our knowledge and experience to your advantage.