A Chapter 11 bankruptcy offers greater flexibility and more options than other chapters when you need time to catch up on payments. It is a corporate financial reorganization that lets companies stay in business while executing a debt repayment plan. This type of filing is available to every business no matter its size or how it’s organized — corporation, sole proprietorship, partnership — but is most prominently used by corporate entities.
In Chapter 11, one can own a business and simultaneously renegotiate debt with uncooperative creditors. It also gives you the opportunity to get out of troublesome contracts and leases. The theory behind a Chapter 11 bankruptcy is that profitable parts of a business should continue to operate to protect jobs and revenue and allow the business to pay off creditors over time. Your business continues to operate under the supervision of bankruptcy court and its appointees. Regular reports must be filed with the bankruptcy court and the U.S. Trustee’s Office, and fees must be paid.
The thorough Winchester attorneys at Stewart & Stewart can assist your company in Chapter 11 bankruptcy.
A Chapter 11 bankruptcy also provides debt relief to people who have assets that would be at risk in a Chapter 7 bankruptcy and who need more flexibility or have more debt than is allowed in a Chapter 13 bankruptcy.
If you or your business needs assistance filing for a Chapter 11 bankruptcy, call Stewart & Stewart at 931-967-4303 or contact us online to set up a free and confidential consultation. We serve clients in Winchester, Tullahoma, Fayetteville, and throughout Tennessee.