What to Know About Filing Chapter 11 Bankruptcy

bankruptcy print paper

If you are looking into the process of filing for Chapter 11 bankruptcy, read on and reach out to our Chapter 11 business bankruptcy attorney. To learn more about our firm and how we can assist you in filing for bankruptcy, do not hesitate to give our firm a call today. Our team will assist you in getting back on your feet. Here are some questions you may have about Chapter 11 bankruptcy:

What is Chapter 11 bankruptcy?

Businesses often go through financial struggles. When a business is in debt, those in charge may consider filing for bankruptcy. Filing for bankruptcy as a business can relieve debtors of their stress by allowing them to restructure their finances. Chapter 11 bankruptcy is known as business bankruptcy and will allow a business to stay open, maintain their employees on staff while a reorganization plan is put into place, and continue their daily operations. This type of bankruptcy allows the business owner to repay their debts over five years.

What can I expect when filing for Chapter 11 bankruptcy?

To file for bankruptcy, you will first have to file a bankruptcy petition which will include the following:

  • A financial statement
  • A list of assets
  • A statement of any outstanding contracts or leases
  • A list of liabilities

The automatic stay will then go into effect once this paperwork is complete. The automatic stay will prohibit collectors from harassing debtors through collection activities. While the automatic stay is in effect, collection calls, letters, bank restraints, foreclosures, repossessions, and lawsuits will be prohibited. The automatic stay allows the debtor to find a sense of relief as they refocus their energy towards restructuring their finances.

The next step in the bankruptcy process will include a meeting of creditors which will determine a reorganization plan for the debtor. The bankruptcy court must approve this reorganization plan.

What is the goal for Chapter 11 bankruptcy?

Filing for Chapter 11 bankruptcy has the end goal of allowing the business to gain a profit once again. The process will prevent vendors, banks, and creditors from shutting down the business. It will also allow a slow stream of payments to these creditors and will help the business to get back on the right path. To learn more, do not hesitate to contact our Chapter 11 business bankruptcy attorney. Our firm is here to help.

Contact our experienced New York firm

Bankruptcy, for many people, is a frightening endeavor. Fortunately, with the help of an experienced attorney, it does not have to be. If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options. We will have your back every step of the way.