Chapter 11 bankruptcy is mainly intended for businesses to receive relief from collections activity while they reorganize their finances. The goal is to return to profitability, which is why the business owner does not choose to liquidate. Individuals also can file for this type of bankruptcy in certain circumstances. Chapter 11 Bankruptcy Lawyers in Wellington FL provide legal representation during the process.
Addressing the Problem
Often, individuals and business owners are not sure whether filing for bankruptcy is the right option. Perhaps they can learn to manage their debt without this step, or maybe they need counsel as to which type of filing would be most suitable for their situation. When a downward financial spiral has developed and bills are going unpaid for any length of time, it’s important to address the problem instead of letting it snowball.
Chapter 7, 11 and 13
People typically hear about Chapter 11 in connection with large corporations, but it can be very helpful in other situations too. However, since this is a more complex arrangement, legal fees will be somewhat higher than for Chapter 7 or 13. Chapter 7 is a liquidation plan and Chapter 13 is a repayment agreement. The payments must be wrapped up within five years. In contrast, there is no time limit on Chapter 11, as arranged through an organization such as the Law Offices of Sean I. Koplow. Browse our website to learn more.
A primary strategy used by businesses and individuals in Chapter 11 is to sell certain assets in order to pay off debts. A corporation may have accumulated too much real estate in the effort to expand, for example. Selling some of it might solve the problem.
As long as the filing is approved, the business remains in operation and tackles the effort to regroup. Unfortunately, many business owners never recover from the overwhelming debt after trying to reorganize. They have better chances if they come up with a detailed plan with the assistance of Chapter 11 Bankruptcy Lawyers in Wellington FL. They might consider what they should have done differently in the past and how it may be possible to make these changes going forward.