Chapter 11 Bankruptcy Attorneys in Atlanta
It is an extremely stressful time when you own a business and cannot keep up with its debts. The United States Bankruptcy Court recognizes this, which is why it has made the option of working with a Chapter 11 lawyer available to business owners. This form of bankruptcy may be ideal if you desire to keep your business open with the legal protection to pay your creditors under a debt reorganization plan. In fact, another name for Chapter 11 bankruptcy is reorganization bankruptcy.
Is bankruptcy the right choice for you?
Starting Your Reorganization Petition with Help from a Chapter 11 Bankruptcy Lawyer
The first thing you need to do to request legal protection while your company works out a debt repayment plan is to file a petition for Chapter 11 bankruptcy in the court nearest to your home. While the petition is typically voluntary on the part of a business owner, you may also receive notice that some of your creditors filed it on your behalf. This is to protect their own interests and ensure that they receive payments under your debt reorganization plan. It’s best to work with an experienced Chapter 11 lawyer from the start as the process can get complicated.
You must also include the following with your petition for Chapter 11 bankruptcy protection:
- A list of all assets and liabilities
- A list of all sources of income and expenditures
- A schedule containing all unexpired leases and executory contracts
- A financial affairs statement
You will also need to pay a filing fee and an administrative fee at the time you submit your paperwork to the local bankruptcy court.
Business Reorganization and Creditor Committees
As your Chapter 11 attorney will explain, the purpose of Chapter 11 bankruptcy is to reorganize businesses with the structure of sole proprietor, partnership, or corporation. One of the benefits of doing so is that it doesn’t risk the personal assets of the business owners in the same way that other types of bankruptcies might do. Your Chapter 11 lawyer will inform you of how your specific business structure impacts your bankruptcy filing.
The judge in your case will form a committee of your creditors to give input on your debt repayments amounts and how to structure them. This typically includes the seven creditors who have the largest amount of unsecured debt against your organization.
Chapter 11 Bankruptcy Attorneys in Atlanta
Chapter 11 is a business chapter in the bankruptcy code that allows businesses to consolidate and restructure debt. If you are a small business owner, particularly, if you are a sole proprietor or a single-member LLC, you may not need to file Chapter 11, but may benefit from Chapter 7. If you or your business is a candidate for Chapter 11 bankruptcy, the attorneys at CMC Law can direct you to qualified attorneys who handle such matters. If you have any further questions about Chapter 11, please call CMC Law at (404) 585-0040 or contact us on the web for a free consultation with an attorney.