Chapter 11 bankruptcy

Unlike Chapter 7 bankruptcy, which results in the wind down of a business’s operations and the liquidation of its assets to generate cash to pay off the business’s creditors, a business in Chapter 11 bankruptcy will continue running, albeit with court oversight for a period of time. When you’ve worked long and hard to build a business, you understandably don’t want to close it down due to financial difficulties. Chapter 11 bankruptcy allows you to continue business operations during the bankruptcy process so that you don’t lose your business and its goodwill and customer base.

A business filing for bankruptcy has two options. It can choose to file for Chapter 7 bankruptcy, commonly known as liquidation bankruptcy. Under Chapter 7, the business ceases as a going concern, and its assets are sold off to pay off as much of the company’s debt as possible.

If you have questions call our

Cheap Bankruptcy Lawyers

Alternatively, a business may choose to pursue Chapter 11 bankruptcy, known as reorganization bankruptcy. The benefits of Chapter 11 bankruptcy are that the business will continue to operate and will ideally come out the other side of bankruptcy in much better financial health. Hopefully, as a more financially secure or profitable venture.

Contact our

Chapter 7 Bankruptcy Lawyers

if you have questions

Another benefit of Chapter 11 bankruptcy, is that it also allows a business to resolve all of its debts and liabilities at once. A business can often secure more favorable terms by collectively negotiating with creditors in bankruptcy court than it otherwise could trying to negotiate with each creditor individually.

Moreover, a bankruptcy court’s decisions, including the decision to approve the reorganization plan, are binding on all of a debtor business’s creditors – even if a creditor disagrees with or does not like the decision.

If you own or operate a business that is struggling with financial problems that seem insurmountable, you should understand the benefits of Chapter 11 bankruptcy. In many cases reorganization represents a much better option than liquidation and closing down the business.

Listed below are six of the major benefits of filing for Chapter 11 bankruptcy.

Contact our

Chapter 7 Bankruptcy Lawyers

if you have questions

If you have further questions about the Chapter 11 bankruptcy process and whether Chapter 11 represents the better option for your business, contact the knowledgeable North Carolina bankruptcy lawyers at Sasser Law Firm today for a free case review. We will discuss your business’s rights and options in bankruptcy.

Keeping a Business Running During the Bankruptcy Process

. Automatic Stay of All Creditor Actions

I

n a Chapter 11 bankruptcy, the automatic stay also gives a business the exclusive right within the first 120 days of the proceeding to propose a reorganization plan to the bankruptcy court. As a result, a Chapter 11 debtor can have significant control over the reorganization process.

Among the most important benefits of bankruptcy includes the automatic stay of creditor actions to collect debt, including contacting your business to demand payment of debt, seizing secured assets, or filing lawsuits to obtain money judgments for unpaid debts.

If you have questions call our

Cheap Bankruptcy Attorneys

The bankruptcy automatic stay enjoins all repossessions, foreclosures, lawsuits, liens, levies, and all other debt collection activities. If a creditor continues debt collection activities after your business has filed for bankruptcy without first obtaining relief from the automatic stay from the bankruptcy court, any actions they take can be voided by the bankruptcy court and the creditors could face fines and penalties.

Chapter 11 bankruptcy

Unlike Chapter 7 bankruptcy, which results in the wind down of a business’s operations and the liquidation of its assets to generate cash to pay off the business’s creditors, a business in Chapter 11 bankruptcy will continue running, albeit with court oversight for a period of time. When you’ve worked long and hard to build a business, you understandably don’t want to close it down due to financial difficulties. Chapter 11 bankruptcy allows you to continue business operations during the bankruptcy process so that you don’t lose your business and its goodwill and customer base.

A business filing for bankruptcy has two options. It can choose to file for Chapter 7 bankruptcy, commonly known as liquidation bankruptcy. Under Chapter 7, the business ceases as a going concern, and its assets are sold off to pay off as much of the company’s debt as possible.

If you have questions call our

Cheap Bankruptcy Lawyers

Alternatively, a business may choose to pursue Chapter 11 bankruptcy, known as reorganization bankruptcy. The benefits of Chapter 11 bankruptcy are that the business will continue to operate and will ideally come out the other side of bankruptcy in much better financial health. Hopefully, as a more financially secure or profitable venture.

Another benefit of Chapter 11 bankruptcy, is that it also allows a business to resolve all of its debts and liabilities at once. A business can often secure more favorable terms by collectively negotiating with creditors in bankruptcy court than it otherwise could trying to negotiate with each creditor individually.

Moreover, a bankruptcy court’s decisions, including the decision to approve the reorganization plan, are binding on all of a debtor business’s creditors – even if a creditor disagrees with or does not like the decision.

If you own or operate a business that is struggling with financial problems that seem insurmountable, you should understand the benefits of Chapter 11 bankruptcy. In many cases reorganization represents a much better option than liquidation and closing down the business.

Listed below are some of the major benefits of filing for Chapter 11 bankruptcy.

If you have further questions about the Chapter 11 bankruptcy process and whether Chapter 11 represents the better option for your business, contact the knowledgeable North Carolina bankruptcy lawyers at Sasser Law Firm today for a free case review. We will discuss your business’s rights and options in bankruptcy.

Keeping a Business Running During the Bankruptcy Process

Among the most important benefits of bankruptcy includes the automatic stay of creditor actions to collect debt, including contacting your business to demand payment of debt, seizing secured assets, or filing lawsuits to obtain money judgments for unpaid debts.

. Automatic Stay of All Creditor Actions

I

n a Chapter 11 bankruptcy, the automatic stay also gives a business the exclusive right within the first 120 days of the proceeding to propose a reorganization plan to the bankruptcy court. As a result, the Chapter 11 debtor can have substantial control over the reorganization process.

If you have questions call our

Cheap Bankruptcy Attorneys

The bankruptcy automatic stay enjoins all repossessions, foreclosures, lawsuits, liens, levies, and all other debt collection activities. If a creditor continues debt collection activities after your business has filed for bankruptcy without first obtaining relief from the automatic stay from the bankruptcy court, any actions they take can be voided by the bankruptcy court and the creditors could face fines and penalties.

The automatic stay allows business managers to get some breathing room from aggressive creditors and debt collectors. This allows owners and managers to thoroughly evaluate the business’s financial situation, negotiate with creditors, and review its options in preparing a reorganization plan.

. Emergency Relief for Operations

A company in Chapter 11 bankruptcy can obtain emergency relief to continue regular operations, which can give employees, vendors, and customers peace of mind that the bankruptcy will not severely disrupt the business’s operations. This is especially important for small business owners who typically operate on a month by month basis.

Within a few days of a Chapter 11 bankruptcy filing, the bankruptcy court will schedule an expedited hearing to hear emergency motions relating to the business and its bankruptcy. This hearing represents an opportunity for the business to ask the court for the authority to undertake certain actions to continue the normal course of the business’s operations, such as continuing to pay wages and benefits to employees, filing and paying taxes, or meeting certain contractual obligations like rent, insurance premiums, or vendor invoices.

The automatic stay allows business managers to get some breathing room from aggressive creditors and debt collectors. This allows owners and managers to thoroughly evaluate the business’s financial situation, negotiate with creditors, and review its options in preparing a reorganization plan.

. Emergency Relief for Operations

A company in Chapter 11 bankruptcy can obtain emergency relief to continue regular operations, which can give employees, vendors, and customers peace of mind that the bankruptcy will not severely disrupt the business’s operations. This is especially important for small business owners who typically operate on a month by month basis.

Within a few days of a Chapter 11 bankruptcy filing, the bankruptcy court will schedule an expedited hearing to hear emergency motions relating to the business and its bankruptcy. This hearing represents an opportunity for the business to ask the court for the authority to undertake certain actions to continue the normal course of the business’s operations, such as continuing to pay wages and benefits to employees, filing and paying taxes, or meeting certain contractual obligations like rent, insurance premiums, or vendor invoices.