Chapter 11 bankruptcy is sometimes referred to as reorganization bankruptcy. It allows you to keep operating your business, giving you months to form a plan to repay some or all of the business debts.
The process is cumbersome. Your business must close existing bank accounts, open new ones, file financial information monthly, and more.
The benefits are extraordinary – your creditors are held at bay while you take the time needed to, yes, reorganize.
Chapter 11 bankruptcy as only for big businesses, like GM or one of the airlines.
However, small business owners who want to keep a business running but need some debt relief also benefit from filing for Chapter 11.
During Chapter 11 bankruptcy, a business remains operational and the business owner continues to make the decisions about how to minimize costs and increase revenue for the business.
The court also must approve the employment of lawyers or other professionals, like accountants. It must keep current on post filing taxes and other bills.
Contact Kurt O'Keefe at 313-962-4630 so you can get your questions answered and get control of your financial life.
Bankruptcy can be extraordinarily complicated. With so much on the line, it is wise to consult with Kurt O'Keefe, a qualified bankruptcy attorney to guide you through the process and decide which type of bankruptcy is right for you.