2024 Year in Review: Key Insights for South Florida Business Owners Considering Bankruptcy in 2025
In 2024, we published several articles on our blog focused specifically on providing information to business owners and executives who are considering a corporate bankruptcy. Here is a look back at some of the key insights our Miami bankruptcy litigation attorneys shared during the year:
Understanding the Basics of a Small Business Bankruptcy Under Chapter 11
Throughout the year, we published a series of articles covering the basics of the Chapter 11 bankruptcy process. If you are unfamiliar with the process, this series will be a good place to start. To learn about the key terms in a small business bankruptcy, key provisions of Chapter 11 and other “basics” according to the U.S. Courts, you can read:
When is Filing Under Chapter 11 the Right Choice for a Company in Financial Distress?
Reorganizing a company’s debts under Chapter 11 is a significant undertaking that requires informed decision-making. While Subchapter V has streamlined the process for most businesses, it is still critical to ensure that filing under Chapter 11 is the best path forward. To learn about some key considerations, you can read:
Alternatives to Reorganizing a Company’s Debts Under Chapter 11
When considering the pros and cons of filing under Chapter 11, it is also worth considering the other options that are available. While filing under Chapter 11 can be a viable solution for businesses facing a wide range of financial circumstances, there are a variety of potential alternatives as well. We covered some of the main alternatives in: Bankruptcy Options and Alternatives for Small Businesses in Florida.
Preserving the Protections of the Automatic Stay
Along with providing the opportunity to reorganize a company’s debts and remain viable as a going concern, filing for bankruptcy under Chapter 11 also provides immediate protection in the form of the “automatic stay.” The automatic stay prevents a company’s creditors from pursuing collection while the company’s Chapter 11 case is pending.
But, creditors can seek relief from the automatic stay in some cases—and, when they do, it can be essential for Chapter 11 filers to assert an effective defense. For more information, you can read: How Can Debtors Defend Against a Motion for Relief from an Automatic Stay?
Avoiding Costly Mistakes During the Chapter 11 Bankruptcy Process
Failing to preserve the automatic stay is just one of many mistakes that companies must be careful to avoid after filing for bankruptcy under Chapter 11. There are several mistakes that can prove extremely costly—including mistakes that can prevent companies from securing financial relief under Chapter 11. To learn about some of these mistakes, you can read: 5 Common Chapter 11 Bankruptcy Mistakes to Avoid.
Strategic Considerations for Maximizing the Benefits of Reorganization
Pursuing a business bankruptcy under Chapter 11 is not a one-size-fits-all proposition. There are several strategic considerations involved, and a custom-tailored approach is critical for maximizing the benefits of the process.
These strategic considerations range from choosing how to approach the bankruptcy process (i.e., whether to pursue a “cramdown”) to choosing whether to seek approval for debtor-in-possession financing. For more insights, you can read:
Reorganizing a Company’s Debts for the Second Time
If you are considering a Chapter 11 reorganization for the second time, this requires strategic decision-making as well. Even if you have been through the process before, it is critical not to make assumptions about what might (or might not) be best, as there are some different considerations involved the second time around. For an introduction to some of these considerations, you can read: Filing for Chapter 11 Bankruptcy Again: When Does It Make Sense to Pursue a “Chapter 22”?
Moving On from a Chapter 11 Reorganization
When preparing to reorganize your company’s debts under Chapter 11, it is important to already be thinking about the future. Going into the reorganization process, business owners and executives should have a plan for operating sustainably post-bankruptcy. Business owners and executives should start planning ahead to restore their company’s financial standing post-bankruptcy as well. We covered these topics in detail in the following articles:
Starting the Chapter 11 Bankruptcy Process
If you are ready to start the Chapter 11 bankruptcy process, where do you begin? While the first major step will be to sit down with a Miami bankruptcy litigation attorney, you can start preparing by collecting (or at least locating) some of the documents your attorney will need to prepare your company’s bankruptcy petition. The list is longer than you might think, and it is critical not to overlook any records that you will need to submit in order to satisfy your company’s filing obligations. For more information, you can read: What Documents Are Needed for a Chapter 11 Business Bankruptcy in Florida?
Request an Appointment with a Miami Bankruptcy Litigation Attorney at Edelboim Lieberman
While these resources are intended to be helpful, they are not a substitute for custom-tailored legal advice. If you are considering a Chapter 11 bankruptcy filing in 2025, we encourage you to speak with a Miami bankruptcy litigation attorney at Edelboim Lieberman in confidence. To request an appointment over the phone or at one of our offices in South Florida, please call 305-768-9909 or inquire online today.
