We’re a business reorganization lawyer group. There are times when a business encounters financial difficulty, including potential claims by lenders and other creditors. There are legal strategies that can be employed for the resolution by our business reorganization lawyer group of such financial conflicts. Our reorganization department represents debtors or creditors in refinancings, debt restructurings, asset sales, workouts, and reorganizations under Chapter 11.
A Chapter 11 bankruptcy petition is filed by companies who are having financial difficulties but can continue business and pay off debt if given more time. This can be a long process as the company is restructuring to ensure its continued success. A Creditor or debtor can file for Chapter 11 bankruptcy for a business. When a creditor files for Chapter 11 it is called an involuntary petition.
Our attorneys will assist in creating and filling the necessary paperwork to begin the process for Chapter 11 bankruptcy in the time mandated by the court. This will include information on assets and liabilities, any current executory contracts and leases, current expenditures and income, statement of overall finances, and more.
When filing for Chapter 11, the court will also require your business plan for reorganization in order to verify if the company is able to pay the debt they have incurred, over the next several years. This plan includes the company’s assets and liabilities and a detailed plan on the repayment of each creditor claim.
Each of the creditors named in the plan will vote to approve the modifications of their contracts. If the creditors and court grant approval of the reorganization plan it will then be confirmed.
During the bankruptcy process, the debtor is granted an automatic stay. This means that during the duration of the proceedings all collection activities are suspended until after the completion of the hearings. This does not stop collection but is used to increase negotiations until the financial situation is resolved. Not all creditor collections fall under the automatic stay. Our attorneys will advise you on what debt falls under this suspension.
LLEB attorneys will help guide you through the process and work to achieve the outcome that is in your business’s best interest.