Running a company is hard enough without having to deal with debt, but for many entrepreneurs, using credit is an unavoidable necessity. Unfortunately, things can get out of hand for many who simply want to fund their business goals. Chapter 11, or reorganization, makes it possible to resolve your debt, keep your creditors happy and avoid having to shutter your doors permanently.
Chapter 11 Basics
As with other kinds of bankruptcy, Chapter 11 demands that you file a formal petition. If you’ve satisfied the requirements, like going through credit counseling and paying your fees, the court will consider your case.
Different kinds of businesses may use Chapter 11 to reorganize their companies. The nature of your filing and the protections you’re eligible for may vary based on whether:
- You’re a sole proprietorship, corporation or partnership
- Your filing qualifies as a small business case
- You’re a single asset real estate debtor
Chapter 11 is also highly flexible. For instance, you may be able to convert a reorganization case to a Chapter 7 liquidation or have it dismissed. Although your reorganization plan must be accepted by the court to be deemed valid, it’s up to how you want to structure it.
Keep Your Business Alive
Chapter 11 bankruptcy can be extremely complex due to the complicated nature of many business structures. As a debtor, you can’t rely on the system to ensure that you jump through all of the right hoops. The responsibility rests on your shoulders, and so do the consequences of failing to file properly.
Talk to an Elkington Shepherd LLP attorney about your filing. We work tirelessly to make bankruptcy more accessible to business owners who have their hands full trying to grow their companies. Our firm takes care of as much as possible by providing:
- Consultations and credit reports for free
- Case handling by reputable lawyers
- Complete paperwork assistance
Focus on running your company while we do the legal work on your behalf. Talk to our attorneys at (510) 465-0404 about filing for Chapter 11 now.