File For Reorganization Bankruptcy With Our Help
Do large sums of debt threaten the future of your business? If so, you may qualify to file for Chapter 11 bankruptcy.
At Flynn Law Firm, we help you throughout this process to maintain control over your assets or business operations while simultaneously paying off your debts. Let our experienced attorney guide you through submitting a case under this specific bankruptcy option.
How Does Filing For Reorganization Bankruptcy Work?
Certain types of bankruptcy focus on debt reorganization. It allows business owners to remain in control of their operations and avoid liquidating their assets. Meanwhile, individual debtors can file for Chapter 11 bankruptcy to ease their debt burden significantly if they exceed the Chapter 14 debt limits.
What Is A Chapter 11 Bankruptcy, And Why Do Individuals Or Companies Choose To File A Chapter 11?
A Chapter 11 bankruptcy is essentially a reorganization of debts. It is a much more involved, complex, and time-consuming process that is more customized to the circumstances of one’s case. This specific Chapter exists for debtors with businesses and large sums of debt. Unfortunately, the fees are also higher, and it can take longer than five years to complete the process from start to finish. When an indebted person or business files for Chapter 11 bankruptcy, the debtor usually maintains possession of the debts. In turn, among other things, they are granted the opportunity to proceed in the operation of the business. Chapter 11 bankruptcy gives the company a chance to regroup and reorganize its finances, as well as push forward a payment plan that its creditors were unwilling to agree to without bankruptcy in place.
Filing for Chapter 11 may also free up credit limits, where the person or business owner is entitled to borrow new money. Creditors affected by the party or parties filing for Chapter 11 can vote on the decision. If it is confirmed by the court and adheres to the requirements set by law, the bankruptcy case can move forward.
What Are Some Examples That Qualify For Chapter 11 Bankruptcy?
Chapter 11 bankruptcy is most commonly used for businesses. When an individual or company files a Chapter 11 bankruptcy, it is usually someone with an extensive amount in debt, and usually, the debts exceed the Chapter 13 debt limits. This typically includes corporations, sole proprietorships, or partnerships. The reason for this is that businesses weighed down by heavy debts may not qualify under other bankruptcy Chapters, and because they can benefit more from filing under this Chapter. In addition, Chapter 11 allows for the business to maintain operation, which is essential for most business owners.
Call Us Today!
If you are facing financial difficulties and don’t know where to begin, we can help. Your financial future is our priority, and we can help relieve the burden of debt.
For more information on Bankruptcy Law in Arkansas, a free initial consultation with us at Flynn Law Firm is your next best step. Get the information and legal answers you are seeking by calling (501) 819-8090 today. We look forward to working with you toward your financial goals!
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