CHAPTER 11 BANKRUPTCY
Chapter 11 Reorganization: Small Business Bankruptcy Protection
Occasionally you read about large corporations filing for Chapter 11 bankruptcy protection. Sometimes those big companies turn things around and sometimes Chapter 11 is a prelude to dismantling the company and selling off the assets.
Chapter 11 relief is also available to partnerships, small businesses and even individuals. Filing for Chapter 11 bankruptcy allows the company to continue operating while it reorganizes, without being forced to liquidate assets. A successful recovery from bankruptcy depends on solid business projections and presenting creditors with a realistic and acceptable repayment plan. In many cases it may be more prudent to fold the business under a Chapter 7 bankruptcy.
The bankruptcy attorneys of Stamatakis+ Thalji + Bonanno represent small businesses and high earners in filing for Chapter 11 reorganization or Chapter 7 liquidation. In particular, we help landlords protect real investment entities. Based in Tampa, we serve clients in Hillsborough, Pasco and Pinellas counties and throughout Florida.
Debtor in Possession: Saving Your Business Through Chapter 11
As in Chapter 13 bankruptcy, the debtor must present a plan for paying back creditors at least some of the debt. The plan must first be approved by the creditors and then confirmed by the court. The debtor in possession is still in charge of the company and its assets, but the reorganization is overseen by a bankruptcy trustee who arranges the 341 meeting of creditors.
Business and consumer reorganizations under Chapter 11 do have a substantial failure rate and the process is expensive. Our knowledgeable and experienced lawyers help business owners chart a realistic course for their business to determine if reorganization is viable or only postponing the inevitable. A committee of creditors may collectively force an involuntary Chapter 11, in hopes of recovering some payment rather than writing off the entire debt if the company goes under.
For a struggling entrepreneurship or partnership, it may not make sense to waste a whole year and thousands of dollars in legal fees and filing fees if the business is likely to end up in bankruptcy. For about $1,000, the business can be dissolved in a Chapter 7 bankruptcy.
In addition to business reorganization, Chapter 11 may be an option for high net worth individuals who have personal debts in excess of the Chapter 7 or Chapter 13 thresholds. Our attorneys can determine if you qualify or if you will have to explore other forms of debt relief.
Tampa Chapter 11 Bankruptcy Attorneys
President Obama and the U.S. Congress has designated our offices a Federal Debt Relief Agency because we help people file for bankruptcy. See our frequently asked questions and bankruptcy timeline pages for more background about the pros, cons and applications of bankruptcy. To discuss your specific circumstances and all the ways Stamatakis + Thalji + Bonanno can help, call us at 866-479-6946 or contact us online.