Chapter 11 Bankruptcy
The Swenson Law Group specializes in assisting people with financial problems. Attorney Mart Swenson and Attorney Evan Swenson and their staff have built a strong reputation for protecting the rights of clients ethically and competently while strictly specializing in bankruptcy and debtor/creditor law all while giving your case the personal attention it needs. Contact our office to discuss your situation at 1-800-934-0334.
What Is A Chapter 11 Bankruptcy?
A Chapter 11 reorganization bankruptcy is intended as a restructuring; allowing businesses or individuals to continue to operate and repay its debts as it is able. Some debts may be settled, of which may have grown beyond the ability to control them. A Chapter 11 bankruptcy, like all bankruptcy proceedings, has a specific process that must be followed by the debtor, in order to successfully bring the bankruptcy to a close. A Chapter 11 bankruptcy follows certain steps, and the end result is that the company (or individual) will be able to survive, and its creditors will receive some or all of what they are due.
Understanding the Chapter 11 Bankruptcy Process…
- In order to begin a Chapter 11 bankruptcy, a business must file a bankruptcy petition with the US 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 in order 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 or not 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 a Chapter 11, the debtor corporation has the ability to remove itself from unfavorable leases, and consolidate its business. This allows the business to reorganize and successfully continue to do business during the bankruptcy. Then the business or individual can rebound after the bankruptcy proceedings are complete, without the weight of debts, prior to reorganization.
Chapter 11 bankruptcies are usually carried out over a period of three to five years. The trustee will monitor the plan progress of the organization or individual, and will report to the court as to whether or not the reorganization plan is being met. The plan has agreed-upon steps which will make the company or individual viable again. Afterwards, the business or individual can emerge with a lower debt load and a better, brighter financial future.
The thought of a Chapter 11 bankruptcy can be confusing, leaving you with more questions and uncertainty than answers. The advice of an experienced bankruptcy attorney is extremely important to ensure you get the relief you need. Attorney Mart Swenson and Attorney Evan 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.
Contact the Swenson Law Group to set up your free case evaluation with Attorney Mart Swenson or Attorney Evan Swenson.