Chapter 11 Bankruptcy

Chapter 11 bankruptcy is targeted at businesses that find themselves with more debt than they can feasibly pay off in the allotted repayment period. For our purposes here, the term “business” includes any sort of business entity – from individually-run organizations to large corporations. If your company finds itself with fiscal woes and you aren’t quite sure how to remedy them, then filing for Chapter 11 bankruptcy might be the best option for you.

Reorganization

Chapter 11 bankruptcy allows the filing business to negotiate with its creditors in order to reorganize its debt repayment plan. It is very uncommon for individuals to opt for Chapter 11, since its costs are so high. For persons and families that are suffering from an over abundance of debts, Chapter 13 bankruptcy is the best option. It has a similar monetary reorganization policy but for individuals, specifically.

Under the reorganization policy of Chapter 11, businesses are allowed to reorganize and restructure their debt and payment plans in order to better fit their current situation. They also typically continue normal operation, although the bankruptcy court will oversee business functions until the company has paid off its debts.

Both debtors and creditors may propose new payments plans under Chapter 11. However, they must be approved by the court, and all the owed creditors must vote to approve any proposed plan, as well. Once these have been completed, then the business may begin payments under its new plan.

Contact Us

If you believe that your company is in a situation where it will not be able to meet its repayment deadlines, or where the debts accrued are simply too high to manage, then filing for Chapter 11 bankruptcy may be the best solution for you. Please contact the Boston bankruptcy attorneys of Joshua Spirn & Associates today at 1-800-975-5346.