Chapter 11 Bankruptcy
Eliminate your business debt. Call our bankruptcy lawyer!
Is your small business struggling under excessive debt? Don't shy away from bankruptcy as an option for finding financial freedom. There are many benefits to bankruptcy that make it a viable option for eliminating your debt! The bankruptcy process was specifically designed by the government to be a legal way for consumers and business owners to discharge debts that they cannot afford to repay. Find out if this is the right bankruptcy option for your unique situation!
Glenn F. Russell, Jr. & Associates, P.C. has helped numerous clients through the bankruptcy process. We can help you understand the different types of bankruptcy for which you may qualify and can guide you step-by-step through the process. We can also help you with bankruptcy exemptions to ensure that you are able to keep as much of your property and belongings as possible.
What is Chapter 11 bankruptcy?
There are several types of bankruptcy under the U.S. Bankruptcy Code. Chapter 7 and
Chapter 13 of this code are for consumers, but Chapter 11 is for small business owners. Essentially, filing bankruptcy under chapter 11 allows you to "reorganize" your debt and keep your business open while your debts are repaid or discharged.
Under this chapter, you – the "debtor in possession" of your business – will sit down with your creditors and work out a repayment plan. This includes determining how long you have to repay your debts before the remainder is discharged. Once your plan has been determined, you must bring it before the bankruptcy court to be entered. You will then continue to operate your business and make payments on your debt (according to the plan) until the repayment term is complete. Your remaining eligible business debts will then be discharged.
What are the benefits of Chapter 11 bankruptcy?
Chapter 11 bankruptcy has many benefits when compared to your other options. Chapter 7 requires you to sell everything and repay as much of your debt as possible before the rest is discharged. Filing under Chapter 11 has the following benefits:
- Your business remains open
- You do not have to sell your business or inventory
- You have time to reorganize and restrategize
- You repay some of your debt over time (less damage to your credit)
- Any remaining debt is discharged after your payment plan is up
Speak with a Massachusetts Bankruptcy Attorney Today
Glenn F. Russell, Jr. & Associates, P.C. is here to help. No matter what your financial situation is, our compassionate and knowledgeable team will help you understand your options and will guide you toward a debt-free future.
Contact us today at (888) 400-9318 for an initial consultation!