An experienced chapter 11 bankruptcy attorney can properly advise you of your options, your rights, and the advantages and disadvantages of filing a Chapter 11 petition. Chapter 11 bankruptcies are voluntary petitions. In Chapter 11, it is the debtor who has made a strategic decision to seek bankruptcy relief in the form of reorganization. Unlike bankruptcies under Chapter 7 or 13, there is no absolute duration of a Chapter 11 case., Some chapter 11 petitions close quickly, others can take several years. In most chapter 11 petitions, no bankruptcy trustee is appointed by the court. The petitioner under chapter 11 will continue to operate its business under the title of “debtor in possession.” Unless there is evidently fraud or gross mismanagement, the bankruptcy court will not appoint a trustee. Chapter 11 debtors will, however, lose control over management decisions to the court. For instance, a sale of assets, entering into new leases, mortgages, secured financing arrangements, modifying contract, or shutting down or expanding business operations will require court approval. It is helpful to think of a Chapter 11 plan as a court supervised agreement between the debtor and its creditors as to how the debtor can meet its future obligations and continue operating its business.
“Confirmation” is the term of art used to refer to approval of a proposed chapter 11 plan. Confirmation is accomplished through effective legal counsel and by approval of the bankruptcy court. A bankruptcy court will examine and analyze several factors in determining whether a proposed chapter 11 plan meets the requirements to be confirmed, broadly speaking these include whether (1) the plan is fair and equitable; (2) whether the plan is in the best interest of involved creditors; (3) whether the plan is feasible and made in good faith; (4) examination of whether creditors would receive an amount equal to or greater than what they would receive if the case is converted to a Chapter 7 liquidation.
For business, organizations and certain qualifying individuals, filing for Chapter 11 bankruptcy can offer a way to reorganize debt without the liquidation of assets. Chapter 11 reorganizations allow companies to continue operations, unlike Chapter 7 liquidations. This affords a business time to rehabilitate and restructure its debts owed to its creditors. The federal statutes governing Chapter 11 may be found here.
Because Chapter 11 proceedings are complex and time-consuming, it is important to work with an experienced Bankruptcy attorney who can guide you while protecting your legal rights and interests. The Chapter 11 law firm of Edelboim Lieberman Revah Oshinsky PLLC has successfully rehabilitated and restructured business and individuals under chapter 11 petitions. Studies suggest that about 15% of chapter 11 bankruptcy cases result in successful reorganization. Our attorneys have achieved sustained success in successfully reorganizing under Chapter 11
When you work with our bankruptcy firm, you will have a team of legal advisers to help you identify and achieve your business goals without liquidation. Our lawyers have over 45 years of combined experience. We apply our diverse experience to properly represent our clients’ interests in matters related to litigation, real estate and corporate law, including Chapter 11 bankruptcy proceedings throughout Florida.