Chapter 11 Bankruptcy
Assisting Businesses in Financial Distress
While there are many different types of bankruptcy, Chapter 11 bankruptcy is one type of bankruptcy associated with businesses and the reorganization of debt and assets in order to facilitate debt repayment. Ideal for large companies and corporations with a significant amount of debt owed to a number of creditors, Chapter 11 bankruptcy allows these entities to enjoy a measure of debt relief by restructuring their finances in order to repay creditors according to the original payment terms and agreement. If your company is considering filing for Chapter 11 bankruptcy, it pays to have a qualified, experienced Chapter 11 bankruptcy attorney on your side to help you navigate what can often be a complex bankruptcy process.
Our bankruptcy attorneys know bankruptcy law like the back of our hands, and we’re more than capable of walking you through the steps of bankruptcy proceedings or helping you uncover options that will give you the relief you’re looking for. With decades of bankruptcy cases and a keen understanding of common issues for debtors under our belts, we’re well equipped to help you handle all that comes when you’re considering filing for bankruptcy.
Why Choose Our Chapter 11 Bankruptcy Attorneys?
Aside from years of experience across all areas of bankruptcy law, our bankruptcy lawyers here at Ivey McClellan can fully represent someone interested in Chapter 11 bankruptcy to an extent that they wouldn’t be able to do themselves. Without proper legal representation via bankruptcy lawyers with experience, the chances of an individual receiving a good ruling on their petition are very low. Anyone seeking to file for Chapter 11 bankruptcy in Greensboro not only needs an attorney but they also need a highly experienced attorney that specializes in bankruptcy law. Ivey McClellan devotes the time and resources our clients need to ensure they enjoy the very best outcomes on their bankruptcy cases, and we strive to go above and beyond in providing real value for the businesses and individuals that trust us to help them with declaring bankruptcy, avoiding bankruptcy, and even navigating life after bankruptcy. Our Greensboro based attorneys aren’t just there to help you file some bankruptcy forms and collect a check. They’re both dedicated to helping you find the best solution for your debt and ensuring your business never needs to worry about its debts again.
How does Chapter 11 Bankruptcy work?
A number of bankruptcy forms and documents are typically required to file for bankruptcy. The Chapter 11 bankruptcy process begins with the filings of a bankruptcy petition with the bankruptcy court serving Greensboro or the area where the debtor has a residence or legal address. A petition may be a voluntary petition, which is filed by the debtor, or it may be an involuntary petition, which is filed by creditors that meet certain requirements. A voluntary petition must adhere to the format of the Official Forms prescribed by the Judicial Conference of the United States. Unless the court orders otherwise, the debtor also must file the following with the court during their bankruptcy filings:
- Schedules of assets and liabilities
- A schedule of current income and expenditures
- A schedule of executory contracts and unexpired leases
- A statement of financial affairs
If the debtor is an individual or a husband and wife, there are additional document filing requirements. These debtors must file the following:
- A certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling
- Evidence of payment from employers received 60 days before filing if it exists
- A statement of monthly net income and any anticipated increase in income or expenses after filing
- A record of any interest the debtor has in federal or state qualified education or tuition accounts (student loan interest payments)
One of the benefits of having an experienced and knowledgeable attorney on your side to help you navigate the Chapter 11 bankruptcy process is the fact that you’ll never have to worry about missing an important step. Unlike filing for personal bankruptcy under another bankruptcy chapter, the Chapter 11 bankruptcy filing process is incredibly detailed and requires an experienced eye to ensure no mistakes are made. After all, it’s no easy feat to restructure funds and debts-- and when it comes to a corporation, even the simplest debt management plans require quite a fair bit of work on behalf of both the petitioner and the bankruptcy court itself.
The Steps After Initial Filings
After filing for Chapter 11 reorganization in Greensboro, NC, the debtor has up to 4 months, or, with an extension, up to 18 months, to file a reorganization plan. Once this period expires, creditors may file competing repayment plans, though this rarely happen. In some cases, the debtor’s operations may be downsized to reduce expenses and free up assets. Other cases may result in liquidation, or a total shutdown of the debtor’s operations and the sale of its remaining property.
Your knowledgeable bankruptcy lawyer will be able to assist with a payment plan that will both satisfy the court’s needs and allow you to pay back debts with ease. After you file your plan, the court will then review it for:
- Feasibility: The likelihood of success that your reorganization plan will fulfill it’s payments to creditors and that you will have to funds to complete the plan.
- Good faith: The plan must be submitted in good faith and not including means forbidden by the law.
- In the best interests of creditors: A “best interests” test is administered to ensure that the creditors receive at least as much under this repayment plan as they would if it were a Chapter 7 filing. In some cases, this means paying the creditors in full, though in most cases it refers to just a fraction of the original debt.
- Fair and equitable: The plan must also pass a “fair and equitable” test for the creditors, though this is only required if creditors vote against the proposed plan.
Once approved by the bankruptcy judge, your company will be well on its way to financial freedom.
If your business is currently dealing with financial problems and is looking for an experienced legal team to help with next steps, Ivey McClellan is here to help. We’ve been a staple in the Greensboro, NC area for years, have helped thousands of clients with bankruptcies, and have the skills and resources to make the process of filing bankruptcy simple and easy. Don’t let a creditor ruin your business. Trust us with your bankruptcy case, and you won’t be disappointed. Contact us today!
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100 South Elm Street Suite 500
Greensboro, NC 27401
551 Monroe Street
Eden, NC 27288
Phone: (336) 623-4600