Chapter 11 Bankruptcy for Individuals and Businesses
Kamini Fox Helps Individuals and Businesses with Chapter 11 Bankruptcy
New York Chapter 11 Attorney Kamini Fox represents both individuals and businesses in Chapter 11 bankruptcy. We represent all types of businesses, including public corporations, single asset real estate companies, small businesses, closely-held businesses, family businesses, self-employed individuals, and sole proprietors.
Named for the chapter of the federal bankruptcy code, Chapter 11 bankruptcy provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep functioning and be able to pay creditors over time.
It is important that you have a bankruptcy firm on your side that is equipped to help your business transition from its current challenges to a more secure financial future.
Chapter 11 is Not the End of the Business. It is a New Beginning
The primary objective of a business considering Chapter 11 bankruptcy is to save the business or to maximize its value to sell it or its assets to a third party for the highest or best offer. Our firm will present all possible strategies and alternatives, putting together solutions that are customized to your business and its operations. Our attorneys seek to create a bankruptcy plan that does not interrupt the momentum of the business’ operations.
Bankruptcy is not the end of the line for a business. For many businesses, it can be a launching point to growth and future development. The reorganization can result in a more solid financial foundation than it had in its original formation.
Chapter 11 reorganization allows businesses to get a breathing spell because of the automatic stay that goes into effect, immediately and automatically, upon the filing of bankruptcy. The automatic stay stops all collection activities by creditors such as tax levies, seizures from bank accounts, execution on judgments, evictions, lawsuits, foreclosures, and other collection efforts.
Chapter 11 is also an option for Individuals
This breathing spell gives the business time to restructure its operations and structure, such as reducing the number of employees or the total salaries and take other measures to position the business to improve its profitability and viability in order to propose a confirmable Plan, which will ultimately be sought to be accepted by creditors and approved by the Bankruptcy Court.
During a Chapter 11 case, the business’s pre-bankruptcy management usually stays in control of operations and management of the business.
A Chapter 11 Option for Small Business
Chapter 11 was often not seen as an option for small businesses due to the expense of filing. With the new U.S. Bankruptcy code Chapter 11, Subchapter V, small businesses can now seek protection. Passed by Congress in a bipartisan bill called the Small Business Reorganization Act of 2019, this bill made it easier and more cost-efficient for small businesses to file for a Chapter 11 bankruptcy.
Call our office to see if your small business meets the qualifications for filing a Subchapter V bankruptcy.
Kamini Fox, PLLC will analyze your business and propose a strategy that will determine whether Chapter 11 Bankruptcy can work for you and if so, obtain the successful emergence out of bankruptcy. Bankruptcy can be a difficult and often confusing process. Kamini will work with you to protect your best interests.
Chapter 11 bankruptcy also serves as a viable option for some individuals in personal bankruptcy, if the individual has noncontingent, liquidated, unsecured debts of more than $419,275 or noncontingent, liquidated, secured debts of more than $1,257,850. This option will allow individuals who have large amounts of debt to save their homes and stop repossession on vehicles, as well as reorganize sole proprietorship businesses, conduct a possibly cram down certain secured debt or strip down or off, or void, mortgages, tax liens and judgment liens from property.