The number of people filing for bankruptcy here in Maine and across the nation continues to rise, and with the current pandemic and economic insecurity, that number most likely will continue to increa…Read More
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is an option available to individuals and businesses who either do not qualify for one of the other types of bankruptcy, or for whom one of the other bankruptcy chapters is not the best choice. It allows corporations, partnerships, other business entities, and individuals to reorganize their debts. Chapter 13 is only available to individuals, so Chapter 11 may be the only way for other business entities to reorganize their debts. Chapter 11 is available to an individual who may exceed the debt limits of Chapter 13.
Chapter 11 bankruptcies are typically more expensive than other types of bankruptcy. The Chapter 11 process can be complex and confusing, and should not be attempted without the help of an experienced bankruptcy attorney. It is important to understand all of your options, so contact McCue Law Office for a free consultation.
How Chapter 11 Bankruptcy Works
To begin a Chapter 11 bankruptcy case, you must file a petition with the bankruptcy court. Our Bangor-based bankruptcy attorneys can help you draft this petition. It may also be an involuntary petition filed by creditors. A debtor must file the following documents:
- Schedules of assets and liabilities
- Schedule of current income and expenditures
- Schedule of executory contracts and unexpired leans
- Statement of financial affairs
Again, our bankruptcy attorneys are here to help every step of the way. Debtors usually continue in business after filing for Chapter 11 bankruptcy, but they do lose control over major decisions. The bankruptcy court must approve things such as sales of assets; entering into or breaking a lease; shutting down or expanding business; and more. Creditors, shareholders, and other parties involved in the case may support or oppose these actions, and the bankruptcy court will take their opinions into account as it makes its decision.
Chapter 11 Reorganization Plans
The debtor often proposes the reorganization plan, and competing plans are relatively rare in cases of Chapter 11 bankruptcy. Reorganization of debt gives you the opportunity to restructure your financial affairs. If you have gotten behind on debt, filing for bankruptcy can give you the breathing room you need to create a plan to pay back as much as possible and get your affairs in order. Many who choose to file for Chapter 11 bankruptcy see it as an opportunity to move forward without the heavy burden of debt.
In some cases, Chapter 11 bankruptcy cases are converted to Chapter 7 bankruptcy, and our bankruptcy attorneys are here to help you find the bankruptcy chapter that best fits your needs.
McCue Law Office – Bankruptcy Attorneys
Our Bangor-based law firm is committed to helping our Maine clients find relief from overwhelming debt. Whether you’re a business owner or individual, we can help you get a fresh start. We have more than 35 years of experience, and along with bankruptcy we also specialize in personal injury, social security disability, workers’ compensation, and real estate. Contact one of our bankruptcy attorneys today for a free consultation.