Chapter 11 Bankruptcy Help

To begin Chapter 11 bankruptcy, a business must file a bankruptcy petition with the U.S. bankruptcy court in its jurisdiction.

After doing so, the organization or business has a period of 120 days in which to file a reorganization plan. This document states how the business or individual will modify their finances to remain functional, pay back debts and successfully recover from the bankruptcy.

Along with this plan and petition, the business or individual must provide sufficient information to its creditors, so they can evaluate this plan and determine whether they feel it is a viable option, or whether they wish to try to force a total bankruptcy on the company.

Once the court has approved the petition for Chapter 11 bankruptcy, and if no objections are made by the creditors of the organization, a trustee is appointed, and the court begins to determine which debts should be repaid and which debts will be discharged. 

In Chapter 11, the debtor corporation can remove itself from unfavorable leases and consolidate its business. This allows the business to reorganize and successfully continue to do business during the bankruptcy. The business or individual then can rebound after the bankruptcy proceedings are complete, without the weight of debts, prior to the reorganization.

Chapter 11 bankruptcies are usually carried out over a period of three to five years. The trustee will monitor the plan's progress of the organization or individual and will report to the court as to whether the reorganization plan is being met. 

The plan has agreed-upon steps which will make the company or individual viable again. Then, the business or individual can emerge with a lower debt load and a better, brighter financial future.

Our attorneys, Even Swenson and Mart Swenson, can assist you through every step of the Chapter 11 bankruptcy process, so your case is able to move smoothly through the courts. The Swenson Law Group has handled numerous cases involving Chapter 11 relief and understands the intricacies of the process. 

Chapter 11 bankruptcies tend to become highly detailed for the debtor, and it is important to seek out a well-qualified and experienced attorney familiar with the Chapter 11 process.