Monmouth County Chapter 11 Bankruptcy Lawyer
Chapter 11 is most commonly utilized by businesses that are experiencing financial distress but would like to keep their businesses operating. It is the only Chapter in bankruptcy wherein a business can continue operations. Chapter 11 provides a mechanism by which a business can restructure its finances and propose a Plan for paying creditors in an orderly fashion, while simultaneously providing its business with financial relief. A Chapter 11 Plan will have to meet numerous requirements of the United States Bankruptcy Code and be approved by the United States Bankruptcy Court. In a Chapter 11 case, it is possible for a business entity to permanently reduce or discharge certain obligations, sell off unneeded assets and/or downsize its operations. A Chapter 11 bankruptcy allows a Debtor to tailor its specific Plan to the needs of its unique business.
Chapter 11 can also be utilized by individuals with a high income or with valuable assets that they wish to retain. Additionally, Chapter 11 can be utilized by those individuals who do not qualify for Chapter 13 (generally because they have too much debt). Similar to a business Debtor, an individual Chapter 11 Debtor must propose a repayment plan, wherein his creditors will be paid some or all of their claims. This repayment plan can provide for the individual to retain some or all of his assets. Individuals may also propose Plans that provide for an orderly liquidation of certain assets. Whether a business or an individual files a Chapter 11, the process, although time consuming, can often provide a Debtor with substantial financial relief.