Ft. Lauderdale Bankruptcy Attorney

Chapter 11 Corporate Bankruptcy

Everywhere you look small and large businesses are hurting in this economy. Outlet malls are standing vacant, small businesses are closing and large corporations are going bankrupt. It's no wonder why so many businesses are seeking bankruptcy protection. In this troubled economy, people just aren't spending the kind of money they used to.

Chapter 11 corporate bankruptcy is available to small and large businesses that have a large imbalance in their debt to income ratio. When paying your monthly bills becomes a challenge, you may not have any other alternative if you want to stay in business. A seasoned Ft. Lauderdale bankruptcy lawyer will be able to provide you with the tools you need to determine if your business could benefit from a Chapter 11 bankruptcy.

How does Chapter 11 work?

Unlike a Chapter 13, Chapter 11 bankruptcy is predominantly for businesses, although individuals can file. It is considering a debt restructuring bankruptcy, one that will not eliminate your debt, but it will restructure your debt and your monthly bills into a payment that you can manage, that way your business can keep its doors open and remain operating.

As an alternative to a Chapter 7, which would require a business to liquidate, under a Chapter 11, a business is allowed to keep many of their assets. As soon as a business files a Chapter 11, they will experience the benefits of the "automatic stay" that is immediately put into effect. With the automatic stay, all collection activity must cease and the stay will remain in effect all throughout the bankruptcy process.

To begin the Chapter 11 process, the debtor creates and proposes a repayment plan, or the creditors may propose a plan as well after a period of time, usually around 120 days. In order to proceed forward, the creditors must approve the plan before it is put into effect. What's more, a trustee will be involved throughout the reorganization process and they will oversee all activities of the business to ensure that the priority claims are paid, that the plan is adhered to and that all assets are managed accordingly. When a business owner fails to exert appropriate control, the trustee may step in and place someone else in charge of the assets or they may have more involvement themselves.

Ft. Lauderdale Chapter 11 Bankruptcy Lawyer

Due to the fact that Chapter 11 corporate bankruptcies are complex legal matters, it is always a wise move to enlist the services of a highly experienced attorney when you plan to file a Chapter 11 on behalf of your business. Chapter 11 corporate bankruptcy is the most complex of all bankruptcies; however, with the right attorney by your side, reaching your goals and saving your company can be a reality. At the Law Offices of Brown, Van Horn P.A. we can provide you with the answers you need to make the right choice when it comes to the future of your business.

For more information about Chapter 11 corporate bankruptcy, contact a Ft. Lauderdale bankruptcy attorney from the Law Offices of Brown, Van Horn P.A.