For businesses that are struggling financially, bankruptcy may be the only option available. Fortunately, bankruptcy doesn’t mean that your business is over and done with. In fact, if you choose Chapter 11, your business can live to see another day. However, to determine if this type of bankruptcy is right for you and to get the ball rolling on filing a petition for bankruptcy with the courts, you’ll first need to speak with a Chapter 11 Bankruptcy Attorney.
There’s no surprise that the court process for bankruptcy can be quite complicated. Many people who have filed for bankruptcy individually know this to be a fact. However, for a chapter 11 bankruptcy involving a business, things can get even more involved and more complicated. This is why hiring an attorney is your best option.
With Chapter 11, your business is allowed to remain open, providing products or services to the consuming public. However, while this is going on, your business will also have the opportunity to restructure its finances in order to satisfy the business’s current creditors. But, in order to do this, a plan will have to be devised that is agreeable to all the parties involved, as well as approved by the courts.
Many times a committee is created to consider the needs of the shareholders and the business’s creditors. Plans to restructure the finances of the company will have to address these two entities. However, since shareholders are considered secondary in any plans created, the emphasis of a restructuring plan is to satisfy the creditors.
The difficulty is creating a restructuring plan. This plan has to be created in a way to satisfy creditors and shareholders. However, if a plan cannot be reached that meets with the approval of a restructuring committee, the company will be forced to sell off its assets in order to repay its creditors.
With the importance of creating a viable restructuring plan, there’s no question that the services of a Chapter 11 Bankruptcy Attorney is necessary. These attorneys can help negotiate and create restructuring plans that everyone is going to be pleased with. This will help your business to satisfy its creditors while working towards being profitable. If you have any questions about this or if your business is facing potential bankruptcy, you may want to speak with Sean C. Paul Attorney at Law. Get in touch with us for more information.
