As soon as you take a look at Chapter 11 Bankruptcy, you’ll find the term “reorganization” throughout the description. But you know well that this means more than simply putting things in order. In the world of Chapter 11 Bankruptcy, Reorganization refers to the process where a bankrupt firm is revived. Think of it as a saving grace for your business. If you are interested in partnering with a Chapter 11 Bankruptcy lawyer, there are a few things you’ll need to know about the reorganization.
In order to begin reorganization, you must have a restatement of assets and liabilities. You will also have to maintain repayments. The whole foundation of reorganization is to create special arrangements that will prevent any further chance of bankruptcy.
There are a few conditions to expect from reorganization under a Chapter 11 Bankruptcy. One situation is that any previous shareholders will be dropped. This is only if the reorganization is successful. If it isn’t, then the company will have to liquidate. Any assets will be sold off. Shareholders may receive proceeds, but that only really happens if there is any money left over. Either way, Chapter 11 bankruptcy is not great for shareholders. The companies, however, can renegotiate the terms of their debt with the creditors. This is only the case if they choose a Chapter 11 bankruptcy. As your Chapter 11 bankruptcy lawyer, I will be able to push for the best possible terms within your situation.
Another thing to remember is that a Chapter 11 bankruptcy is open to all businesses. These can range from a corporation to a sole proprietorship. Either is perfectly fine. We also offer the Chapter 11 bankruptcy option to individuals (although it is not usually preferred). The petition for a Chapter 11 bankruptcy may either be filed voluntarily by the debtor or involuntarily by the creditors. If you are in debt, it is best to file the petition on your own before the creditor decides to.
A reorganization is a great benefit for those who are on the brink of bankruptcy. However, as your bankruptcy lawyer, I also have to recommend that there are other forms of bankruptcy that might be more beneficial to your situation. Whether you require a chapter 7, chapter 13, or a chapter 11 bankruptcy lawyer is entirely dependent on your best case scenario. For instance, in some cases, a chapter 7 bankruptcy is better for those who cannot afford to reorganize their business and just need to move on. But no matter what the situation is, we at RLC will certainly be here to negotiate for the best possible outcome.
For more information on how we can provide for your bankruptcy needs, please feel free to contact us here.