Orange Park Chapter 11 Bankruptcy Lawyer
Bankruptcy is a great way to manage your debt and get a new financial start, but it is not a one-size-fits-all solution. Chapter 11 is a type of bankruptcy that is mostly used by businesses, although individuals can utilize it as well, when they do not qualify for other types of bankruptcy. If your business has incurred a substantial amount of debt and you do not know how to handle it, there is a lot at stake. Our Orange Park Chapter 11 bankruptcy lawyer can advise you of the option best for you depending on your preferences and circumstances.
What is Chapter 11 Bankruptcy?
Chapter 11 bankruptcy allows you to restructure your debt and assets so you can repay your creditors according to a reorganization plan. In most cases, Chapter 11 is voluntary, but there are times when a number of creditors can petition a bankruptcy court to force a business into the process. A Chapter 11 bankruptcy will typically take between two months and two years to complete, although it can take longer in some cases. Still, this bankruptcy process allows you to continue running your business while making the payments in accordance with the plan.
The Process of the Reorganization Plan
The reorganization plan is central to any Chapter 11 bankruptcy case. Essentially, this is an agreement between you and your creditors. Your business may be required to minimize expenses or downsize in an effort to free up assets. Creating a reorganization plan can take anywhere from a few months to 18 months, depending on the length of time between creating the initial plan and the creditors and the bankruptcy court approving it. The steps involved in creating a reorganization plan are as follows:
● A 341 meeting is held during which your creditors can ask you questions about the business while you are under oath.
● Your initial repayment proposal is submitted, which must be done anywhere between 90 and 120 days, depending on the facts of your case.
● Creditors are given the opportunity to submit requests for modifications, or to object to the plan. The bankruptcy code outlines certain minimum conditions any reorganization plan must meet.
● If modifications are necessary, your creditors and your lawyer will negotiate a modified plan.
● Your creditors will vote on whether or not to accept the plan. There are many complicated requirements the vote is subject to.
● Once the creditors have agreed on the plan, it is submitted to the court for approval.
Contact Our Chapter 11 Bankruptcy Lawyer in Orange Park Today
At the Law Offices of Carol M. Galloway, P.A., our Orange Park Chapter 11 bankruptcy lawyer knows how your debt can have a very negative effect on you and your business. If you are carrying more debt than you can effectively manage, call us today at 904-694-5489 or reach out to us online to schedule a free consultation and to learn more about how we can help you through the process.