Filing for Bankruptcy Chapter 11
Filing for bankruptcy chapter 11 is considered a reorganization. However, as opposed to chapter 13 cases, chapter 11 bankruptcy is primarily utilized by businesses. Learn more about what happens when you file for chapter 11 bankruptcy here.
Chapter 11 Bankruptcy (Reorganization)
Businesses file for bankruptcy chapter 11 when they wish to keep the business alive and operational. This enables them to pay creditors over time, and it’s typically used by small business owners. Business types which are applicable include corporations, LLCs, partnerships and sole proprietorships. For the latter though, it’s important to keep in mind that personal assets also come into play, not only the assets and debts of the business.
Individual business owners may have sought out chapter 13 as a solution, but may not have qualified. In this case, they may still be able to qualify to file for bankruptcy chapter 11.
Chapter 11 enables you to reduce monthly obligations with new payment agreements, and to balance income and expenses to regain and maintain profitability. Assets can also be sold via chapter 11 if necessary.
If you’re considering filing for bankruptcy, be sure to consult with an experienced chapter 11 attorney. Call our team at 301-977-4300 to learn more about how we may be able to help. With over 40 years of combined experience, we’re ready to take up your case as a chapter 11 bankruptcy attorney in Maryland.