Albany Chapter 11 Lawyer
If you’re worried about keeping your business afloat and are facing the potential of going out of business, you may be able to file for Chapter 11 bankruptcy. Chapter 11 can help your business reorganize so you can keep your doors open.
First, you must come up with a realistic plan that shows how the reorganization of your business affairs will get your company out of debt. If you choose to go through the process for Chapter 11, you can keep your business open, keep your employees on the payroll, keep all of your business’ assets and you will keep control over how your business runs during and after it reorganizes.
If you want help getting your company out of the red and into the black, call an Albany Chapter 11 lawyer at James Trauring & Associates, LLC.
Reorganizing Your Business Under Chapter 11
When your company files for bankruptcy, you will be assigned a trustee. Once you file, any property your business owns becomes property of the bankruptcy estate. Additionally, any collection activities against your business are stopped.
The stoppage will give you and your creditors some time to get restructured. You can sell, lease or use and of your business’ property and also look for financing to help your business stay in operation. However, you must protect your creditors’ rights while doing so. For example, you can’t sell property at a very low price or just give it away.
Once you’ve filed for Chapter 11, you can develop a reorganization plan for the first 120 days after you case is filed. The plan will need to outline how you plan repay your creditors. Your bankruptcy trustee will put together a committee of your creditors who will vote on your plan. This is a very crucial step and you are encouraged to get help from an Albany Chapter 11 lawyer while you develop your plan. If you need help with reorganization, call us at James Trauring & Associates, LLC.
Once your plan is approved by your creditors and a bankruptcy court, your business will come out with lower debts and a reorganized business plan.
Important Things to Know About Chapter 11 Bankruptcy
The goal of Chapter 11 bankruptcy is to protect your creditors and make sure their interests are protected. During Chapter 11:
- Your bankruptcy trustee will monitor your business to make sure it’s not being mismanaged or wasting business assets.
- Your creditors may ask for the court to throw out your bankruptcy case if it was filed in bad faith or your reorganization plan is deem to have no chance of success.
- Certain creditors may be able to still collect on any debts if it can prove its property value is at risk.
- After your 120-day period to develop of reorganization plan is up, your creditors can develop their own reorganization plan. And yes, it may differ from yours.
If you think your business may be forced to close its doors for good, call the Albany Chapter 11 lawyers at James Trauring & Associates, LLC, for help.