CHAPTER 11 BUSINESS BANKRUPTCY

The main difference between Chapter 7 and Chapter 11 bankruptcy is that under a Chapter 7 bankruptcy filing, the debtor's assets are sold off to pay the lenders (creditors). In contrast, in Chapter 11, the debtor negotiates with creditors to alter the terms of the loan without having to liquidate (sell off) assets. 

A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a "reorganization" bankruptcy. Usually, the debtor remains “in possession,” has the powers and duties of a trustee, may continue to operate its Business, and may, with court approval, borrow new money. A plan of reorganization is proposed, creditors whose rights are affected may vote on the plan, and the court may confirm the plan if it gets the required votes and satisfies certain legal requirements.

If you would like more information regarding reorganization options for your Business, call our office today and ask for a consultation with our attorneys, experts in Business Bankruptcy. Our attorneys have successfully worked with many businesses to reorganize their

businesses before and during the bankruptcy process. Your company may not even need bankruptcy as there are various options available to businesses.