When restaurants enter the Chapter 11 bankruptcy process due to a need to reorganize debts for a more stable financial future, things can move quickly. While 120 days seems like a long time -- it's approximately four months, after all -- that's all the time you have to finalize a reorganization plan.
Chapter 11 bankruptcy for restaurant owners
Filing Chapter 11 as a business entity
Chapter 11 bankruptcy can offer financial relief to a beleaguered business, but before you decide on any legal route regarding your professional finances, you do need to understand the requirements and the consequences of filing bankruptcy as a business. One of the most important considerations is how the bankruptcy might impact you personally.
Keeping Debtors Honest During Bankruptcy
The trade off for the "fresh start" you get by filing bankruptcy is that you have to let your creditors know you're seeking bankruptcy relief and may be wiping out your obligation to pay them. Consequently, bankruptcy cases are public record and creditors who have information about debtors are able to present that information to the Bankruptcy Court. This forces debtors to be honest about their circumstances.
Restructure your debt with Chapter 11 bankruptcy
Filing for bankruptcy can give you relief from your debts. Chapter 11 bankruptcy is designed to help individuals and business entities alike. Partnerships, limited liability companies and corporations can all take part in this form of bankruptcy. You have to meet a certain threshold of income in order to file this specific type of bankruptcy. Chapter 11 gives the filer a chance to reorganize one's debt and helps this person or company to have profitability after the bankruptcy and holds the debt collectors or creditors at bay for the time being.
How do I file for Chapter 11 bankruptcy?
When you need to declare bankruptcy, there are a few ways you can go. One of the types that is intended to help you reorganize your business debt is Chapter 11 bankruptcy. If you have heavy debt and just cannot seem to catch up, this may be the time to call in an attorney who can guide you through the details of declaring bankruptcy.
Chapter 11 bankruptcy may be the answer you're looking for
When you file Chapter 11 bankruptcy, you probably have a desire to reorganize your debts, either personal or within the confines of a company that you own. It can be a large corporation or a small company. The Law Offices of David A. Tilem have more than 30 years of experience dealing with this type of bankruptcy and we have the knowledge to assist you and answer all your questions.
What is chapter 11 bankruptcy?
Bankruptcy is often seen as a way to start over, with a clean slate. There are different ways of getting there. While Chapter 7 is seen as the "wipe clean and start over" method that involves the closure of a debtor's business and a liquidation sale to repay creditors, Chapter 11 is more of a way to repay and restructure not only your debt but your method of repayment. Often, the restructuring also involves obtaining new funding and realigning assets.
Chapter 11 bankruptcy can mean a new beginning
Declaring Chapter 11 bankruptcy doesn't have to be a negative thing. As a matter of fact, it is a way to restructure your debt so that you can keep your business, partnership or limited liability company up and running.
Why you should know more about Chapter 11 bankruptcy
Lots of people leap before they look in life, and that tendency can encompass a wide array of situations. One of them should not, however, be Chapter 11 bankruptcy. It may very well be the right option for you, yet it is still a decision that you should come to after really learning what it is all about. Here is some key information to help you be well informed.
The basics of Chapter 11 bankruptcy
When confronted with financial challenges, many distressed businesses consider filing for Chapter 11 bankruptcy. It can be a way for businesses to reorganize their debts, then reemerge as a viable entity and successfully operate again with financial issues resolved. Of course, those who are considering taking this path should know some basic information about it.
