Filing Chapter 11 Bankruptcy
Chapter 11 bankruptcy is a specific category that is used by businesses. Similar to Chapter 13 for individuals, Chapter 11 is not a total liquidation. Instead, Chapter 11 offers the business a chance to work out payment plans and schedules and stay in business while attempting to pay off creditors with the assistance of the bankruptcy court.
Filing a Chapter 11 bankruptcy is a fairly complex procedure, and it is not recommended that business owners attempt it without the assistance of a lawyer.
Chapter 11 Bankruptcy Filing Documentation
Your main job in your Chapter 11 bankruptcy is going to be providing the documentation. Both your lawyer and the court will need to see paperwork proving what you owe, how much you owe, and to whom you owe it, as well as any payments you’ve made, collection letters, or any other documents pertaining to your debts. Essentially, if the issue is relevant to your Chapter 11 bankruptcy, it’s important that you prove it with written evidence. Do your best to keep things organized. Keep in mind that you must provide this information within 15 days of the date of filing, so be ready before you send in the official Chapter 11 bankruptcy filing.
Meeting of the Creditors
The next step is a meeting with the creditors, which takes place in a court setting with your lawyer and a judge present. Any creditors who wish to participate in the payment plan organization are invited to come to this meeting. This will occur a few weeks after you file, and you can have some suggestions for how you would like to repay your debts, but your creditors will have the right to approve or reject any plan (with the assistance of the court) before it will be approved by the court.
If you are going through the Chapter 11 process, you should strongly consider speaking with a lawyer to guide you through its legal complexities.