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What can you do when debts and bills are piling up and no money is coming in, your business is failing and you can't make ends meet? An option may be filing for bankruptcy.
There are several types of bankruptcies that can be filed. Here is a quick look at them, but, of course, consult with an attorney to make sure you are filing... more »
Bankruptcy is a legal procedure used by individuals and businesses that have no way to pay their obligations. Today, most filings result from events out of the control of the "debtors" who file them; businesses caught in an economic downturn, individuals with huge medical bills or whose debts have outrun their income due to loss of... more »
Commercial bankruptcy can have several outcomes. However, a redistribution of debt is often the best solution, since it allows the business to continue running. For this type of ruling, you have to file for Chapter 11 or 13 bankruptcy and write a debt management plan that outlines your new fiscal responsibilities. Here are guidelines. more »
Any time prior to confirming a Chapter 13 payment plan, a court can order a bankruptcy case transferred to Chapter 11 upon motion from a creditor, debtor or trustee. The conditions of the debt allowed under Chapter 13 include more than $336,900 in unsecured debt or $1,010,650 in secured debt; an existing Chapter 13 bankruptcy case;... more »
There are a number of different types of bankruptcy cases that can be filed in the United States. Two of the most common versions of bankruptcy are known by the section of the U.S. Bankruptcy Code in which they are found: Chapter 7 and Chapter 11. These different bankruptcy procedures have different net effects and end results. Both... more »
Whether you're searching for consumer or commercial bankruptcy information, we've got you...
Declaring bankruptcy is one of the hardest things you'll ever have to do. In bankruptcy, you...
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Chapter 11 bankruptcy is a lot like Chapter 13 bankruptcy that is filed by individuals. However, Chapter 11 is most often used by corporations,... more »
Unlike many other forms of bankruptcy, Chapter 11 is for businesses rather than individuals. It allows a corporation that has accumulated too much... more »
When debts mount up more quickly than your ability to pay them off, there is a way to work with creditors through the courts to remedy the... more »
Chapter 11 is a bankruptcy that allows a failing business to attempt to reorganize in a way that can keep the business alive. more »
A declaration of bankruptcy under Chapter 11, Title 11, of the United States Code, typically permits the corporate debtor to reorganize, shed a... more »
Chapter 11 is a chapter of the United States Bankruptcy Code, which permits reorganization under the bankruptcy laws of the United States. Chapter 11 bankruptcy is available to every business, whether organized as a corporation or sole proprietorship, and to individuals, although it is most prominently used by corporate entities. In contrast, Chapter 7 governs the process of a liquidation bankruptcy, while Chapter 13 provides a reorganization process for the majority of private individuals.
Chapter 11 in General
When a business is unable to service its debt or pay its creditors, the business or its creditors can file with a federal bankruptcy court for protection under either Chapter 7 or Chapter 11.
In Chapter 7 the business ceases operations, a trustee sells all of its assets, and then distributes the proceeds to its creditors. Any residual amount is returned to the owners of the company. In Chapter 11, in most instances the debtor remains in control of its business operations as a debtor in possession, and is subject to the oversight and jurisdiction of the court."Practitioner">Joseph Swanson and Peter Marshall, Houlihan Lokey and Lyndon Norley, Kirkland & Ellis International LLP (2008). A Practitioners Guide to Corporate Restructuring. City & Financial Publishing, 1st edition ISBN 9781905121311
Features of Chapter 11 bankruptcy
Chapter 11 bankruptcy retains many of the features present in all, or most bankruptcy proceedings in the United States. It also provides additional tools for debtors as well. Most importantly, empowers the trustee to operate the debtors business. In Chapter 11, unless appointed for cause, the debtor acts as trustee of the business.
Bankruptcy affords the debtor in possession a number of mechanisms to restructure its business. A debtor in possession can acquire financing and loans on favorable terms by giving new lenders first priority on the business earnings. The court may also permit the debtor in poss read more at » http://en.wikipedia.org/wiki/Chapter+11%2c+Title+11%2c+United+States+Code
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