An Overview Of Chapter 11 Bankruptcy
Bankruptcy laws provide for Chapter 11 bankruptcy, which is used primarily to rehabilitate a business debtor. Chapter 11 allows a debtor to enter into an agreement with creditors under which all or part of the business continues. The debts of the business are restructured to allow the debtor to continue operations and make payments based on a plan of reorganization.
Chapter 11 bankruptcy is more complex than Chapter 12 or Chapter 13 bankruptcy, but it may provide an option for those farm operators or individuals whose debts exceed the limits imposed by Chapters 12 and 13. Its provisions are quite complicated, and any decision to seek a debt consolidation loan or file a Chapter 11 petition should be reviewed and planned out with an attorney extensively before filing.
What Can You Expect During Your Chapter 11 Bankruptcy?
- The objective in a Chapter 11 bankruptcy case is to adjust and reorganize a debtor’s obligations so as to allow the business to continue.
- To initiate a Chapter 11 bankruptcy case, a voluntary petition is filed with the court. A schedule of assets and liabilities, and a statement of financial affairs also must be filed.
- In most cases, the debtor — known as the “debtor in possession” once the case has begun — remains in possession of the property, develops a plan and generates funds to pay off the debt.
- Generally, a trustee is not assigned to the case unless there is evidence of fraud or mismanagement.
- A committee of creditors will generally be appointed to oversee the business operation once the case has been initiated.
Contact Steinhilber Swanson LLP
The success of your bankruptcy can depend on the quality of your representation. Steinhilber Swanson LLP is a Wisconsin law firm offering quality representation for a wide variety of bankruptcy cases, including business bankruptcies.
We invite you to contact our firm to schedule a consultation with our lawyers by calling 866-381-4391. If you prefer, get started by sending us an email via our online contact form. Offices in Oshkosh, Madison and Milwaukee.
We are a debt relief agency. We help people file for relief under the Bankruptcy Code.