Chapter 11 BankruptcySee More Videos
Chapter 11 Business Bankruptcy Attorney
Representing NY businesses facing Chapter 11 bankruptcy
Chapter 11 Bankruptcy allows a business to continue operating and receiving income, keeping it doors open and its employees on staff. Debt payments are restructured over a 5-year Plan, all while under the protection of the Bankruptcy Court.
Chapter 11 Bankruptcy allows a business owner to stop his creditors, vendors or banks from shutting the business down. A chapter 11 Bankruptcy allows a business to continue operating and receiving its income and revenues, while slowing the stream of payments to his creditors.
Chapter 11 even allows Businesses to continue a line of credit, receiving monies owed to it, even insurance monies for an open claim.
In a Chapter 11 case, a Business will restructure its debt payments over a 5-year Plan, allowing it to continue operating, keeping its employees on staff and earning income for all families involved.
Chapter 11 is a reorganization Plan with a goal to increase net flow, keeping the doors open and the staff employed. The Chapter 11 Bankruptcy goal is to make the business a profitable entity again. The Law Offices of Allen A. Kolber, Esq. works with small and mid-size businesses that wish to stay afloat and recover from a bad financial situation. If you need an effective law firm to guide you through Chapter 11 Bankruptcy, contact The Law Offices of Allen A. Kolber, Esq.
Chapter 11 Bankruptcy process
The first thing a business owner should do is to contact an experienced Bankruptcy attorney that can explore options to avoid Bankruptcy, including debt restructuring. Our firm can help you make an educated decision that is best for you, the business owner, and the business you have worked so hard for.
If Chapter 11 is right for you, your attorney will file a Bankruptcy Petition, which will include a financial statement, a list of assets, a list of liabilities, and a statement of any outstanding contracts or leases.
Filing for Bankruptcy triggers an Automatic Stay.
The Automatic Stay prohibits creditors and debt collectors from pursuing your debts. They are not allowed to contact your business, providing you with much needed space to reorganize your debt.
Meeting of creditors
Soon after the filing of the Bankruptcy Petition, the largest creditors will have an opportunity to meet with the attorney and business owner to get a clear picture of the business’s Reorganization Plan.
The “Reorganization Plan”
You and your attorney will develop a Chapter 11 “Reorganization Plan”. Usually, this Plan will restructure debt, cancel burdensome contracts, and reduce overhead. With a reorganization Plan, a business continues to operate and any profit generated is used to pay operating expenses first, and then pay off a portion of the debt and eliminating the balance.
Getting the Plan approved
The Plan must be approved by the Bankruptcy court, and then voted on by the largest creditors. The Bankruptcy court will approve the Plan if it is in the best interests of the business and the creditors and meets the legal standard of the “Liquidation Analysis”: are the creditors receiving a better, albeit minimal payment of their debt, as opposed to the company going out of business and the creditors receiving $0.00.
Contact an experienced Chapter 11 Bankruptcy attorney
The Law Offices of Allen A. Kolber, Esq. has over 25 years of experience helping debtors obtain relief through the Bankruptcy code. Our firm appreciates how hard you have worked for your business and we understand the need to continue your life goals and keep those doors open. If you are facing serious financial problems and need effective legal services and knowledgeable advice on the matter of Bankruptcy, contact The Law Offices of Allen A. Kolber, Esq. for a consultation to discuss the best course of action for your business.