Bankruptcy is not something that anybody looks forward to but it happens to businesses as well as to individuals. Businesses that are failing financially often find that they must file a chapter 11 bankruptcy, which is a reorganization of the debts incurred by the business. A bankruptcy lawyer helps those businesses and sometimes certain individuals understand chapter 11 bankruptcy law in New Market, Maryland for them to be prepared if the time to file should come. Here is a look at how chapter 11 bankruptcies work in Maryland.
Chapter 11 Bankruptcy in Maryland
Chapter 11 bankruptcy is primarily for business organizations such as corporations and limited liability companies, but it also applies to individuals whose debts exceed the allowed amounts for a chapter 13 bankruptcy. This could be especially true for homeowners in Maryland whose homes could easily exceed the allowed amounts for a chapter 13 bankruptcy. The primary thing that the debtors (mostly business) want to do in a chapter 11 bankruptcy is to reorganize and restructure the debts so that they can keep the business. At times, liquidation or sale of the business could turn out to be more profitable in chapter 11 bankruptcies than in chapter 7 bankruptcies.
More About Chapter 11 Bankruptcies
Plan confirmations in chapter 11 bankruptcies are handled by the court system, but the creditors also have a say in how the plan goes. The debtor will also have the responsibility of providing monthly financial reports to the creditors and the courts, and taking care of quarterly fees to the U.S. Trustee. The debtor in chapter 11 bankruptcies is fortunate to have flexibility in the structuring of a plan.
A Bankruptcy Attorney in Maryland
There are many lawyers in Maryland that specialize in helping businesses and individuals with various types of bankruptcies, including chapter 11. Russell & Heffner, LLC is a law firm in the New Market, Maryland area that helps commercial and individual clients with bankruptcies. Anyone who needs more information on chapter 11 bankruptcy law in New Market, Maryland can contact this law firm. For more information browse our website.