Chapter 11 bankruptcy is an option for individuals or businesses that want to discharge their debts without liquidation of assets. It is also known as “reorganization” and “restructuring.” The main difference between Chapter 11 and Chapter 13 is that Chapter 11 does not have any limits on the amount of money that is owed by debtors. When this type of bankruptcy was introduced, the main aim was to target large corporations.
Hames, Anderson, Whitlow & O’Leary, P.S. handles debtor and creditor bankruptcy cases in Richland, Pasco, Kennewick and surrounding areas. We are a debt relief agency that helps people file for bankruptcy relief under the Bankruptcy Code.
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Is Chapter 11 Bankruptcy Right for You?
Individuals and corporations can file for Chapter 11 bankruptcy. There are even cases where this form of bankruptcy could be the only available form of relief for someone who is experiencing a lot of financial hurdles. It is always important to approach a lawyer and allow them to give advice on whether it is a suitable type of bankruptcy to file for someone in your situation.
If you are in business, whether a sole proprietorship or partnership, you are still eligible to make a Chapter 11 filing. This type of filing is certainly suitable for any business organization that wants to remain in business after bankruptcy instead of closing down and liquidating.
Chapter 11 Bankruptcy Is Not Feasible For Self-Filing
Chapter 11 bankruptcy is a complex process that many small businesses seeking to restructure and individuals who want to reorganize their finances are forced into because they do not qualify for the Chapter 13 filings due to owing too much. For most people, especially those who own a small business, filing Chapter 11 without the aid of an attorney is not feasible. The filing process is not only expensive but also risky and time consuming. Chapter 11 bankruptcy is a long, drawn-out, exhausting process.
What Happens When You File Chapter 11 Bankruptcy in the Tri-Cities?
When making Chapter 11 filings, you will be required to restructure your finances and come up with an ideal repayment plan which has to be approved by the bankruptcy court.The plan basically reduces obligations and modifies the payment terms so that a debtor will be able to balance his income and expenses and still pay the debt.
For businesses, the new plan ensures that the business regains profitability and continues operating so that it is able to pay up the money based on the new agreements. Chapter 11 bankruptcy can also allow debtors to sell some or all of their assets in order to pay some debts or downsize their business. There are special provisions that may apply depending on your unique financial situation. These rules can help individuals and businesses cut down the cost of making Chapter 11 filings.
Hames, Anderson, Whitlow & O’Leary, P.S. has the knowledge and experience you need to get through this trying time as quickly and efficiently as possible with the best possible outcome for your case. We are Kennewick, Pasco, and Richland bankruptcy attorneys you can count on.
Don’t lose any more money. Now is the time to act.
Call us at 509-586-7797
Hames, Anderson, Whitlow & O’Leary, P.S. serves creditor and debtor bankruptcy needs for the Tri-Cities (Richland, Pasco, Kennewick, West Richland) and surrounding areas including Hermiston, Benton City, Prosser, Grandview, Sunnyside, Finley, Burbank, Desert Aire, Mattawa, and Othello.
For more information regarding bankruptcy please visit our Bankruptcy FAQ’s.