Chapter 11 Bankruptcy for Corporate Debtors
Individuals and corporate debtors are both eligible to file for bankruptcy under Chapter 11, but most cases of this type involve businesses which are struggling under the burden of large loads of debt. If the viability of your business is threatened by debt, Chapter 11 bankruptcy may be the solution you need for getting the situation under control and ensuring the future survival of the enterprise. Chapter 11 is highly flexible in its terms, but this flexibility also makes it difficult to generalize about what will happen throughout the process. There are, however, certain basics which apply to any case.
In Chapter 11 bankruptcy, the corporation's existing debts are restructured, similar to in a Chapter 13 case. The process also involves implementing a plan of reorganization of the business' assets and affairs, with the goal of correcting the issues which caused it to accumulate such large quantities of debt in the first place. You will maintain possession and control of the business, though you will be subject to the supervision of the court-appointed bankruptcy trustee and the oversight of a committee of creditors who have an interest in the case. If you are accused of failing to act in good faith toward your creditors in the course of carrying out the reorganization plan, you may be removed from control of the business for the remainder of the process.
Gain a Fresh Start for Your Business
With success, a Chapter 11 bankruptcy will not only get rid of the debts which threaten the future of your business, but you will also be able to handle the problems which put it in jeopardy to begin with. Contact an Ocala bankruptcy attorney at The Law Offices of Justin McMurray, P.A. to discuss your own situation and to learn more about what to expect during the process. We offer free consultations so that you can review all your options and decide whether this is the best approach for you.