How to Refile a Chapter 11 Bankruptcy
Chapter 11 bankruptcy protection allows an individual or company to reorganize his debts in an attempt to manage his finances. Considered the most flexible of all the bankruptcy protection chapters, it can be the most expensive to implement due to the complexities of its codes. As the rate of successful chapter 11 reorganizations stand at only 10%, some companies choose to re-file for Chapter 11 protection. Re-filing is a relatively straightforward process, and it is essentially the same as the initial filing process.
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Instructions
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Gather all necessary financial records and letters from creditors.
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Consult with a bankruptcy attorney. He will be able to provide you with legal advice to guide you through the process.
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Take notes during the meeting with the attorney. Doing so will enable you to refer back to specific information after the meeting.
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Wait to receive notice of the bankruptcy hearing.
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Attend the hearing. Your creditors will be notified of the date of the hearing and will be given the opportunity to have their grievances heard. The creditors will be asked to vote on the reorganization plan. If it is not approved, then you will have the option to file for Chapter 7 protection.
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Begin to repay your creditors according to the approved repayment plan.
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Tips & Warnings
Ideally, before re-filing for Chapter 11 protection, you should do everything that you can to avoid having to file. Take a proactive approach to avoid excessive debt and implement a strategy to turn your business around.
While in many instances it is possible to re-file for Chapter 11 protection, but if the bankruptcy judge or court issued a specific order prohibiting a re-file during the previous hearing, you will be unable to re-file. Furthermore, re-filing for bankruptcy protection may affect the automatic stay that is placed on your current debt depending upon the circumstances surrounding your initial filing. Your attorney will provide further information regarding your eligibility to re-file.
