Chapter 11

If you are an individual or a small business owner (not a corporation or partnership) you may want to consider a Chapter 11 filing to assist in addressing financial difficulties in addition to solutions which may be available under Chapter 7 or Chapter 13. Contact Parker & Associates for a free consultation. Nina M. Parker is a bankruptcy lawyer with 29 years of experience. She will help you to better understand the difference between personal liabilities and that of a business/corporation.

Chapter 11 of the Bankruptcy Code is a "reorganization" and is available for individuals with large debts and assets who do not meet the strict asset/debt limitations of Chapter 13 and for corporations or partnerships (businesses both large and small can take advantage of Chapter 11). Chapter 11 offers great flexibility and can be extremely useful as a tool to retain assets or restructure businesses in financial difficulty. It can be very useful in real estate cases when trying to catch up on past due payments or need a mechanism to sell a piece of property or a means to modify certain obligations. Chapter 11 can be useful in cases where there is property with equity as well as when there is no equity, for dealing with delinquent taxes and many other scenarios where time is needed to catch up on payments while keeping the business running.

Chapter 11 is a unique solution and in most instances the Debtor is a debtor-in-possession meaning that he/she/it remains in possession of all assets and operates the business as a going concern. There are many excellent advantages to seeking protection under Chapter 11 but it comes with many responsibilities.

There are great powers afforded to Debtors in Chapter 11 including the ability to object to creditors' claims, to avoid certain liens, reject leases and contracts, extend the time for repayment of claims to creditors or even reduce the amounts owed or to be paid to creditors.

The ultimate purpose and goal of a Chapter 11 case is to get a Plan of Reorganization (repayment plan) confirmed by the Court. The Plan is essentially a contract with creditors about to how they will be repaid, over what period of time and from what source. A Plan of Reorganization can be approved if creditors vote for approval of a Chapter 11 Plan in certain numbers but in some instances, even if they do not vote in sufficient numbers for the Plan, they may be forced to accept the Plan if other requirements are met. There are many ways to formulate a Plan and to obtain confirmation.

Contact Nina M. Parker to schedule an appointment to explore avenues which can assist in resolving the financial issues which you or your business may need including possible Bankruptcy Court relief under Chapter 11.