Understanding Chapter 11 Bankruptcy And The Process
Chapter 11 bankruptcy is an option for small businesses in Jackson struggling with debt and needing a fresh start. Many people associate filing Chapter 11 with going out of business. Actually, your company can stay in operation while under Chapter 11 and use the process to make it more efficient and profitable while also reorganizing your debt into something you can afford. Businesses of all sizes, including large corporations and small enterprises, are eligible to file for Chapter 11 bankruptcy protection.
Why Chapter 11?
Business owners use Chapter 11 because:
- It avoids having to liquidate to pay off creditors and cease operations
- It pauses debt collection efforts and harassment
- It gives you and your bankruptcy attorney time to negotiate with creditors and develop a repayment plan
- It allows the owners to keep control
- It gives owners an opportunity to restructure and eliminate unprofitable aspects of their business
Most businesses that file Chapter 11 bankruptcy emerge in a better financial position and structure to grow and succeed in the years ahead.
The Chapter 11 Process
The Law Offices of Craig M. Geno, PLLC, can guide you through the Chapter 11 bankruptcy process step by step. That process begins with filing a Chapter 11 petition with your local bankruptcy court. You must include information about your business’s cash flow, account balances, income taxes and more.
The filing puts a stop to debt collector harassment and gives you time to develop a reorganization plan to submit to the bankruptcy judge for approval. This typically involves reviewing creditor claims to see if you indeed owe them money, objecting to false or exaggerated claims and negotiating with legitimate creditors to reduce the remaining balance. Creditors often agree to forgive some of what they are owed because receiving partial repayment is better than getting nothing at all. As the debtor, you must also submit monthly operating reports to the court. You can also use this time to renegotiate existing contracts to make their terms less onerous.
Once you and your attorney have completed your repayment plan, you file it with the court for approval. As long as the plan was made in good faith and complies with all applicable laws, the judge will most likely accept the plan.
Learn If Chapter 11 Is Right For Your Small Business
If you are considering Chapter 11 bankruptcy, you need assistance from an experienced attorney. Craig Geno has helped thousands of clients get out of overwhelming debt and achieve their business goals. Contact his office at 601-844-8254 or via email. Craig can meet with you in person or over the telephone and is available for evening or weekend appointments if that is more convenient for you. Serving clients in Memphis, Tennessee and throughout the state of Mississippi from his office in Ridgeland.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.