If you are a business owner, caught up in the web of debts and followed by creditor everywhere, it is necessary for you to think of filing bankruptcy to get rid of debt as well as a headache for the case. If you are in such a predicament and want your payment plan and finances to be restructured so that you can pay off the debts, then come to us and file a case of Chapter 11 Youngstown bankruptcy.
This is generally the only option for the businesses as well as the individuals who have a pretty much notable source of income as well as a huge amount of debt that you will not qualify for Chapter 7 or Chapter 13. This option of filing a case is often considered to be the easiest option since you will be saved from a lot of risks of losing your assets like Chapter 7 or Chapter 13.
To determine whether this is the right option for you or not, you need to come to us today. Our team of experts, led by Youngstown bankruptcy lawyer Sean Logue, will review your financial situation which includes debts and assets. After a complete evaluation, we will suggest you which type of bankruptcy case you need to file.Relating to Business
When a business is going through some serious financial crisis, they can file a case of Chapter 11 bankruptcy. The debtor will be the one to file a petition about the case in the bankruptcy court. In some instances, the creditor can also file an involuntary petition against the debtor or the defaulter. Unlike Chapter 7, in this case, the debtor can still run the business and keep the operations at the office smooth. Again, unlike the Chapter 7 Youngstown bankruptcy, there won’t be any trustee deployed to review the financial situation or to determine the measures of paying back the debts. However, if the court feels it is necessary and the case of some fraudulent activity, then a trustee can be deployed to manage the finances during the bankruptcy procedure. The case can take anywhere around a few months to two years to complete.
Though in the case of Chapter 11 bankruptcy, the debtor can still keep on the operations of a business, yet, he or she won’t be able to make any major financial decision for the company. It is the bankruptcy court who will have the power to make all the decision for the business. This power of the court includes,
- Selling assets of the company
- Signing and breaking the lease agreement
- Interfering and modifying business contracts if necessary
- Shutting down the business
- Stopping the expansion of the business
The bankruptcy court can ask for the opinions of the shareholder, creditors, and the unsecured creditor’s committee. After considering what they have to say, they can take the major decisions for the business.
In the case of Chapter 11 bankruptcy, the debtor is supposed to come up a reorganization plan to deal with the debts. While presenting the plan as a debtor, you need to keep in mind that there can be obstacles for you. The tentative three results are,
- Approval of the plan by every party involved.
- Creditor’s committee to be proposing another competing plan.
- Creditors to turn down the proposal completely, eventually turning the case into a Chapter 7 bankruptcy case.
However, in the case of the last option, the case must meet certain benchmarks that will make it a confirmed case of Chapter 7 bankruptcy. If you are making the proposal as a debtor, then you have to make sure that the court approves of the plan knowing that you have created it in good faith and abiding by all the regulations laid out by Bankruptcy court. In most of the cases, the Chapter 11 bankruptcy comes with the risk of getting dismissed or converted in Chapter 7. The success rate in terms of recognition is around 10%-15%. However, if you are going to file the case and are successful, then you will get a chance of restructuring your business while keeping up the operations.
If you are going to file this pretty difficult case of Chapter 11 bankruptcy, come to us at Youngstown Criminal Law Group. For more details on Chapter 11 bankruptcy or for free consultations from Sean Logue and his team, call at 1 844-748-8384 or drop an email at firstname.lastname@example.org.