Business Bankruptcy/Chapter 11
Chapter 11 bankruptcy is a type of bankruptcy businesses can file when they wish to remain open while still enjoying the protections of bankruptcy court. Under Chapter 11, the business will reorganize in order to pay down debts more effectively, while still remaining open. This gives the business some breathing room as it moves forward, trying to dig out from under the burden of debt. The Law Offices of Mark Schlachet offers comprehensive bankruptcy services for businesses, including assistance in filing Chapter 11 bankruptcy reorganization.
How Chapter 11 Bankruptcy Works
If a business reaches the point that it cannot repay its debts, Chapter 11 bankruptcy allows the business to operate and run as usual while finding a better way to pay down debts. Under Chapter 11, the struggling business can perform normal day-to-day functions, but under careful court supervision. During this process, the business cannot sell assets, start or terminate rental agreement, or stop or expand business operations without the permission of the courts.
The process also includes a reorganization, either through downsizing, liquidating assets or renegotiating debts, in order to repay creditors. The business can propose its own reorganization plan, which must be accepted by the bankruptcy court and presented in the best interests of the creditors. If the business cannot suggest a workable plan, the creditors are allowed to propose one. Once the court approves the plan, the business must stick to it in order to continue to receive the protections of the bankruptcy court.
Navigating Chapter 11 Bankruptcy Requires Careful Legal Help
Companies who are looking to restructure and reorganize through Chapter 11 bankruptcy need solid guidance to successfully navigate the process. Attorney Mark Schlachet gained extensive experience in Bankruptcy Court while serving as a United States Bankruptcy Judge in the Northern District of Ohio. During this time, he adjudicated In Re White Motor Corporation, the largest corporate bankruptcy ever filed in the United States at the date of its filing.
That time in the Bankruptcy Court gave Attorney Schlachet a unique insight into the way the bankruptcy process works for struggling businesses. He has since moved into solo practice, and he is prepared to undertake debtor, creditor committee and individual creditor representations for Chapter 11 bankruptcy cases in both Ohio and New York. If your business is struggling, contact the Law Offices of Mark Schlachet today for a consultation.