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Chapter 11 Bankruptcy

Dedicated Bankruptcy Attorney in Baldwin County

If you find yourself buried under mounting business debts, filing for bankruptcy might be your best option. However, deciding whether or not to file bankruptcy might only be half the battle. There are several different types of bankruptcy you can file for, one of which is Chapter 11. Chapter 11 bankruptcy, often called reorganization bankruptcy, can be a great way to get out from under the serious debts harming your business. If you need help filing for bankruptcy, our firm is here to help.

Attorney Kevin Ryan of Ryan Legal Services, Inc has ample experience working in consumer and business law. He is dedicated to providing his clients with comprehensive legal services at a time when they need it most. From start to finish, Attorney Ryan can guide you through each step of the bankruptcy process to help you and your business get back on your feet.

Call our firm today at (251) 241-5234 to schedule a free consultation.

About Chapter 11 Bankruptcy

Chapter 11 bankruptcy is primarily filed by large corporations, but can sometimes work for small businesses. On very rare occasions, consumers might also file for Chapter 11 bankruptcy. Through Chapter 11 bankruptcy, businesses with substantial debts can reorganize their debts and plan for future improvements after bankruptcy as a way to increase profits and decrease expenses. The benefits of Chapter 11 include an increased time period to plan for substantial changes and the opportunity to reorganize debts. However, this type of bankruptcy is often more costly and time-consuming than other types of bankruptcy.

The Chapter 11 Bankruptcy Process

In most cases, the debtor files for Chapter 11 bankruptcy to escape insurmountable debt, though the creditors may ban together to file an involuntary petition for the debtor. Once the petition is filed through the U.S. Bankruptcy Court, the creditors must immediately stop all collections activities. During this time, the debtor will formulate an organization plan.

The reorganization plan will create a strategy for renegotiating contracts to discharge or partially repay debts. Creditors are usually more inclined to work with debtors in these situations because a partial payment through Chapter 11 bankruptcy is typically more than they would receive otherwise. Creditors will be organized into different classes depending on the priority for repayment. For example, state and federal tax agencies will be a top priority, followed by employees who are owed wages. The renegotiation plan will also create a proposal for post-bankruptcy profits. The creditors must agree to the terms of the proposed plan, including repayment amounts, and the court will then provide final approval.

Skilled Legal Help With Your Bankruptcy Case

After the court has approved your reorganization plan, you will be expected to meet all payments stipulated in the agreement. If the plan is fair and abides by bankruptcy laws, the court will usually approve it. However, creating a plan that fits these guidelines but still protects your interests and your financial well-being can be difficult. If you need to file bankruptcy, our attorney can represent your interests and help create a plan that protects your corporation’s future.

Contact Ryan Legal Services, Incto get started on your case, today!

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