A Chapter 11 bankruptcy is way for businesses that are still viable, but in need of additional time to meet their debt obligations, to reorganize debts and contracts with court supervision while they continue to operate. Except in certain situations involving fraud or mismanagement, Chapter 11 usually does not require a trustee.
If your business is having to deal with too many actions by your creditors, such as liens, lawsuits, foreclosures, or is just having a hard time making all its payments on time, Chapter 11 may be your best option. Consider consulting a Little Rock chapter 11 bankruptcy attorney to review your situation and determine if Chapter 11 will work to save your business. A good Chapter 11 attorney can work with you to help you use the process to your best advantage. With the right legal representation, your bankruptcy can potentially help you get a handle on the company’s debt and give you a fresh financial start.
While in Chapter 11, the company will be able to try to negotiate a later payment schedule or work out an agreement with creditors to resolve the debt for a lesser amount. Both the creditors and the court need to approve of these arrangements.
You may decide to put your business into Chapter 11 voluntarily, or the creditors may force it on you by filing a petition to compel involuntary bankruptcy. If the reorganization fails to satisfy the creditors, they may be able to take over the company’s assets and operation. Otherwise, the Chapter 11 converts to a Chapter 7 bankruptcy, the company is dissolved, and any assets are sold to pay as much of the debt as possible.
During the period a business is in a Chapter 11, it is in a somewhat precarious position, where its future is at stake. The federal law governing this type of reorganization, Chapter 11 of the United States Bankruptcy Code, is a complex set of statutes that need to be navigated carefully to bring about a positive outcome. It is essential to have an experienced chapter 11 bankruptcy attorney in Little Rock, AR advising you throughout the process to avoid costly mistakes that could potentially destroy the business.
It is important that the attorney you choose is one who specializes in bankruptcies and knows how to apply the law in your favor.
A Chapter 11 bankruptcy involves a massive amount of paperwork and submission of detailed financial documents to the court. Your attorney will prepare the documents and file the petition with the bankruptcy court. Properly prepared legal documents will prevent your petition being denied or delayed.
Throughout the bankruptcy process, your Little Rock, AR chapter 11 bankruptcy attorney will be your liaison with the trustee the court assigns to your case, will represent you and advocate for your interests at the Meeting of Creditors, and will advise you at every stage until the court discharges the bankruptcy.
If you own or run an Arkansas business that is in financial trouble, contact the Dilks Law Firm in Little Rock before things get worse. With our experience and exclusive focus on the practice of bankruptcy and debt relief law, we can give you the advice and guidance you need at this difficult time to give your business the best shot at recovering from the crisis and becoming profitable.
Don’t give up or give in to creditors who harass and threaten you. Stop their collection efforts and threats by hiring Dilks Law to file a petition for Chapter 11 bankruptcy to reorganize and restructure your debt. Your initial consultation is free.