Life Cycle of Chapter 11 Bankruptcy
We, at Lewis & Monroe, PLLC, in Orlando, Florida, represent all types of businesses, including corporations, LLCs and partnerships, in Chapter 11 bankruptcy proceedings. Our firm understands that, in some cases, the only way to save a business is to file for bankruptcy. We view this as a positive approach, as bankruptcy can allow your business to stay afloat instead of folding.
To schedule an appointment for a free initial office consultation, call 407-917-4147 or contact our office online today.
What The Lifecycle Looks Like
We meet with business bankruptcy clients to determine how our services can best be tailored to their needs. Once we are retained, we can get down to the details of how we need to move forward with the bankruptcy.
Unlike the personal bankruptcies of Chapter 7 and Chapter 13, Chapter 11 business bankruptcy clients do not take credit counseling courses. We proceed by gathering documents and providing a questionnaire to clients, which allows us to fully prepare for the bankruptcy filing.
- Emergency hearings are often scheduled to ensure that some essentials are kept in place, such as officer salaries, keeping the utilities on and other orders for the business to continue to operate.
- Usually, within a certain time period, the business is then required to file a disclosure statement. This is essentially a financial statement saying what happened to the firm, detailing the current financial condition and projecting into the future how the business will operate.
- A Chapter 11 bankruptcy requires a plan of reorganization, which sets out how each group of creditors is going to be paid over the time period of the plan. Each group or class of creditors has similar characteristics, such as all unsecured creditors being grouped together. Each classification of creditor gets to vote whether or not to accept the plan. For the plan to be accepted without litigation, a majority of the votes in each class of creditors must be gained, plus that majority must equal two-thirds of the total claims that voted in that class.
- Once the confirmation order is entered by the court, it creates a new contractual agreement between the debtor and its creditors.
- The goal of a Chapter 11 is for the business to get out of bankruptcy and move on based upon the terms of the plan.
Contact A Bankruptcy Lawyer From Our Office Today
The hiring of a lawyer is an important decision that should not be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and experience.
We are a debt relief agency. We counsel clients according to federal bankruptcy code.