Chapter 11 bankruptcy is a legal process that allows businesses, LLCs, corporations, and partnerships to reorganize their finances and debts. It’s one of the most commonly used forms of bankruptcy. As opposed to Chapter 7, which typically marks the end of a business entity, Chapter 11 allows the business to continue running while reorganizing it in a way that is hopefully more profitable.
If you are a business owner considering this form of bankruptcy, the Chattanooga Chapter 11 bankruptcy lawyers at Tom Bible Law are here to offer experienced legal guidance. We have over 18 years of experience handling bankruptcy cases for individuals and businesses, and we’ve filed tens of thousands of cases. With offices in Chattanooga and Tullahoma, we help clients all throughout Tennessee and North Georgia.
To arrange a free consultation with our experienced Chapter 11 lawyers, contact our office today.
Is Chapter 11 Bankruptcy Right for Your Business?
To know whether Chapter 11 is the best option for your company, you need to understand how it works. To begin the process, the business must file a petition through the local court, including information about their debts, business assets, and finances. Once a petition is processed, the court will issue an automatic stay, prohibiting any creditors from taking debt collection actions.
After the stay is issued, you have a specified length of time (normally four months) to work with the court and creditors to come up with a reorganization plan, outlining how you resolve your financial obligations.
Debtor in Possession
The goal is for the repayment plan to be fair for you and for your creditors. It will create a schedule for repayment, and during this time your company will continue operations as a “debtor in possession.”
Being a debtor in possession makes you the trustee of your bankruptcy estate, giving you certain rights and obligations, as well as protection against creditors. This allows you to focus on restructuring your finances in the interest of sufficiently resolving your debts. The court will make the final decision regarding whether this is a good and viable option for your company and your creditors.
The debtor in possession can make unilateral business decisions, so long as those decisions are in the normal course of operations. If a decision is not part of your normal course of business, you must obtain permission from the bankruptcy court before executing it.
Let Our Chattanooga Chapter 11 Bankruptcy Lawyers Help You
Thorough planning is a key element to a successful Chapter 11 bankruptcy process. Tom Bible Law can help you position yourself in such a way that maximizes your advantages in filing for Chapter 11 bankruptcy.
Our firm can provide guidance throughout the entire process and make sure that you understand how Chapter 11 works and its potential implications of it for your business. We can also help you prepare and file any documents, such as petitions, schedules of assets and liabilities, and disclosure statements.
In addition, our lawyers can also help you negotiate a repayment plan with creditors. This is one of the most pivotal steps of the entire legal process, and it’s directly related to the future success of your business. We can help protect your interests in these negotiations and craft an agreement that is fair to you and amicable for your creditors.
It’s our goal to give you the best chance to successfully reorganize your finances. Give our Chattanooga Chapter 11 bankruptcy attorneys a call at (423) 690-7712 to discuss your case.