Small Business Reorganizations (Chapter 11 Bankruptcy)
A Chapter 11 reorganization can provide powerful relief for a struggling business or for individuals. The “automatic stay” which takes effect upon filing provides breathing room from pursuing creditors and the opportunity to formulate a plan of reorganization. A great deal of flexibility is possible. As a “debtor in possession,” you remain in control of your business and your assets.
The plan can provide for curing of mortgage arrearages, reduce secured debt to the value of collateral, and provide for the assumption or rejection of leases, for the partial payment of trade debt or other unsecured debt, and for the sale of selected assets. Once your plan is approved by the bankruptcy court it is a new contract between you/your business and creditors. Chapter 11 is a relatively complex process, but it affords the greatest opportunity for creative financial solutions.
Please contact us at your convenience to discuss your situation.