Las Vegas Chapter 11 Bankruptcy Lawyer
Understanding How Chapter 11 Works
Unlike Chapter 7, the goal of Chapter 11 is to reorganize the debtor’s debt structure rather than liquidate the assets. As such, it is typically used by medium to large companies (and individuals) facing significant financial difficulties. With Chapter 11 bankruptcy, the debtor has the opportunity to develop a plan to manage and repay their debts over time. This typically includes restructuring existing debt or creating new payment plans with creditors.
By creating an organized plan of action, Chapter 11 can help businesses or individuals recover financially and stay afloat despite any financial hardship they may be facing. And having an attorney who is familiar with the process, understands a company’s rights and obligations, and will push for a confirmable plan is crucial to a successful reorganization in Chapter 11.
Meet with the attorneys at Fox, Imes & Crosby, LLC today to learn how to keep Your Future Secured.
Why Choose Chapter 11?
Chapter 11 bankruptcy is a type of reorganization primarily used by businesses and corporations that are facing financial hardship, but wish to remain in operation. The main advantage of filing for Chapter 11 is that it can give companies more time and flexibility when trying to restructure their debts without having their assets liquidated or removed altogether. Additionally, because it can allow them more control over their operations during the process, they are given an opportunity to fix whatever issues were causing financial difficulty before proceeding with repayment plans or other proposed solutions.
Though Chapter 11 is considered the most complex and expensive form of bankruptcy, a Chapter 11 debtor usually remains “in possession” with the powers and duties of a trustee. A company that continues to make a profit may be able to retain control of its operations and run its business under the supervision of the court while pursuing several avenues to return the company to profitability.
Negotiating a Debt Repayment Plan
The central element of Chapter 11 is a plan of reorganization. Creditors whose rights are affected may vote on the plan, and the court may confirm the plan if it gets the required votes and satisfies certain legal requirements. Once confirmed, the Chapter 11 reorganization plan becomes a contract between the debtor and creditors that governs their rights and obligations going forward.
The confirmation process typically involves a series of negotiations with creditors in an attempt to adjust the company’s debt load so that the company can come away in a position to pay its bills and make money so that it can grow again.
Most Chapter 11 bankruptcy cases take a year and a half to resolve. However, it is common for these cases to take up to five years before the case is concluded and the repayment plan is approved. This can mean that creditors must wait years before they start receiving payments.
Regular Chapter 11 vs. Subchapter V
Subchapter V bankruptcy, also known as "Subchapter V of Chapter 11", is a specific type of Chapter 11 reorganization for small businesses. This form of Chapter 11 filing differs from traditional Chapter 11 bankruptcies in a few ways. Subchapter V offers faster resolution times and is a less expensive option than most normal Chapter 11 filings. Additionally, it streamlines the bankruptcy process, removing some unnecessary hurdles that would otherwise slow the process down for eligible small businesses. This can save time and costs larger companies face with more complex Chapter 11 cases.
Subchapter V bankruptcy is not available to all businesses, and it is important to ensure that you are eligible for this type of filing before proceeding. Contact Fox, Imes, & Crosby, LLC to find out if you qualify for a Subchapter V filing or if traditional Chapter 11 bankruptcy is the best option for you.
Get Help Preparing for Chapter 11 Bankruptcy
By filing for Chapter 11 bankruptcy, you can get the chance to reorganize your finances and put yourself in a much better overall situation. It can be a difficult road, but the Las Vegas bankruptcy attorneys at Fox, Imes & Crosby, LLC are dedicated to helping clients through this challenging time. We have extensive knowledge and experience assisting business clients with the Chapter 11 bankruptcy process, including Subchapter V filings, so please do not hesitate to contact us if you have any questions or need more information.
Ultimately, with the right advice and preparation, a successful Chapter 11 bankruptcy filing is attainable. So, if you're in this situation and considering this option, don't hesitate to schedule a consultation. Let us provide you with invaluable guidance as you work to secure your and/or your business's financial future.
If you live or run a business in the Las Vegas area and are considering filing for Chapter 11 bankruptcy, call our law firm today at (702) 941-6320 or contact us online. Fox, Imes & Crosby, LLC is ready to help.
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