Bankruptcy is a process that is used when individuals are suffering through financial times. These financial times may show no hope for improvement in the future. During this time, they may be struggling to make ends meet or they may not be able to at all. It may be time for them to consider their bankruptcy options. If a business is struggling financially, they can look into Chapter 11 bankruptcy proceedings. This bankruptcy process is mostly used by businesses to continue to operate and stay open. Through this process, businesses can stay open for business and have customers. It allows their employees to continue working while they gain a profit. Over time, the business pays back their debts to creditors while following a repayment plan. This plan may be over a five-year period of time and is often referred to as business bankruptcy.
What happens at the meeting of creditors?
One of the steps involved is a meeting of creditors. This step may seem intimidating to some individuals. They will have to meet with people they owe money to. This can be a difficult process for some debtors. It can be hard to face people that they have accrued debts to. However, at this time, their attorney can accompany them to ease their worries. With their attorney’s help, they can present a repayment plan that appeases their creditors. Their creditors can have their minds eased knowing that the debtor is trying to make amends and pay off their debts. At this meeting, you will attend with your attorney and the creditors you owe the most money to will be able to meet with you to hear your situation. During this meeting, you will present a reorganization plan for your finances involving the business and its current stance. This plan is made with your attorney to continue paying your operation costs for your business while paying off debt at the same time you are remaining open. The plan must be approved by the bankruptcy court to make sure that you are considered to be eligible to continue with the plan that you have laid out. These payments can be done over a five-year period, which can give you more time that you may need to recover financially.
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.