Experienced Aggressive bankruptcy Attorneys
Chapter
11
Bankruptcy
First, there are really two kinds of Chapter 11’s. There is the so called Chapter 13/11’s. This is the case that you would file a Chapter 13 Bankruptcy, but for the fact that your secured debt is too high, or your unsecured debt is too high. These cases while requiring more paperwork, and additional meetings, are less difficult then the typical Chapter 11 case.
If you have a small business that is looking to file Chapter 11 Bankruptcy, the process can be paperwork intensive, difficult, and disappointing. Often times small businesses file Chapter 11 based on debtor optimism. Bear in mind that for a Chapter 11 to go smoothly, the business must be making some money above and beyond expenses to pay back creditors, and some money to pay the officers, you, a salary going forward. Afterall, if the company is not paying you a salary, what is the purpose of continuing the Chapter 11 Bankruptcy.
LLG’s best advice is to check your expectations at the door and to not let any attorney tell you the Chapter 11 process is easy. In a Chapter 11, the creditors wield more power than in a Chapter 13, or Chapter 7 Bankruptcy. In addition, retainers required to prosecute a Chapter 11 case are much greater than those required to prosecute a Chapter 7 or Chapter 13 case. LLG recommends you consider all these factors before jumping into the filing of a Chapter 11 Bankruptcy.
First, there are really two kinds of Chapter 11’s. There is the so called Chapter 13/11’s. This is the case that you would file a Chapter 13 Bankruptcy, but for the fact that your secured debt is too high, or your unsecured debt is too high. These cases while requiring more paperwork, and additional meetings, are less difficult then the typical Chapter 11 case.
If you have a small business that is looking to file Chapter 11 Bankruptcy, the process can be paperwork intensive, difficult, and disappointing. Often times small businesses file Chapter 11 based on debtor optimism. Bear in mind that for a Chapter 11 to go smoothly, the business must be making some money above and beyond expenses to pay back creditors, and some money to pay the officers, you, a salary going forward. Afterall, if the company is not paying you a salary, what is the purpose of continuing the Chapter 11 Bankruptcy.
LLG’s best advice is to check your expectations at the door and to not let any attorney tell you the Chapter 11 process is easy. In a Chapter 11, the creditors wield more power than in a Chapter 13, or Chapter 7 Bankruptcy. In addition, retainers required to prosecute a Chapter 11 case are much greater than those required to prosecute a Chapter 7 or Chapter 13 case. LLG recommends you consider all these factors before jumping into the filing of a Chapter 11 Bankruptcy.