Chapter 11 Bankruptcy
As a New York Bankruptcy lawyer, I see business owners every day who are struggling with debt. Lease payments, funds owed to vendors, uncollectable revenue, and taxes can all compound to create a disastrous financial situation for an honest, hardworking business owner.
If you own a business that is struggling financially, Chapter 11 is a possible solution.
Chapter 11 bankruptcy is specifically designed for businesses that are experiencing financial hardship. Although businesses can often file for Chapter 7, Chapter 11 is the preferred choice, because it allows you to continue running your business.
Unlike Chapter 7 bankruptcy, a Chapter 11 does not clear your debts; rather, it provides a means for you to make repayment arrangements with your creditors, while still having the resources to operate your business. Keep in mind, though, that this type of filing works best for businesses that have significant cash flow and assets – if your business does not have adequate cash flow, Chapter 7 might be a more suitable option.
When we meet to discuss your business’s financial situation, we’ll take a look at your assets, cash flow, and debts. If Chapter 11 is the right option for you, I’ll file a petition with the Bankruptcy Court on your behalf. In order to do this, we’ll need to work together to complete some necessary documents, including:
- A schedule of your assets and debts
- A schedule of contracts and leases
- A statement of your business’s financial affairs
- A schedule of your business’s current income and expenses
Also, you will need to complete a credit counseling course before the petition is filed. I can help you find an approved credit counseling course – in many cases, the course can even be taken online.
We will also work together to draft a reorganization plan. This will contain a proposed repayment schedule for your creditors to review and approve.
I have helped hundreds of businesses successfully reorganize – often, these businesses regain financial health and go on to become highly profitable. I look forward to doing the same for you and your business.
For more information about Chapter 11 bankruptcy, please check out these helpful articles: