Chapter 11 Bankruptcy
Maintaining Control of Your Business While You Find Relief From Debt
Challenging economic times have brought many large companies and corporations to the brink of financial ruin. Rather than pursuing a complete liquidation, filing for Chapter 11 bankruptcy may be an option for business reorganization.
Our reputation for excellence stems from building and maintaining relationships, keeping open lines of communication and providing quality legal representation.
Attorneys at our firm exhibit extensive knowledge of the Chapter 11 bankruptcy process, working toward the best resolution options for your company. To discuss your case, contact us by calling 859-254-5522. We graciously accept referrals from legal colleagues and former clients alike.
What is Chapter 11 Bankruptcy?
Federal bankruptcy laws govern how companies and organizations go out of business or recover from crippling debt. Many large companies file under Chapter 11 of the Bankruptcy Code rather than Chapter 7, because they can still run their business, control the bankruptcy process and attempt to become profitable again while seeking protection from their creditors.
As in other bankruptcies, an automatic stay applies to collection efforts by creditors. Management continues to run the day-to-day business operations, but all significant business decisions must be approved by a bankruptcy court.
The Bankruptcy Court can grant complete or partial relief of the companies’ debts and contractual obligations. Typical debts and contracts which can be cancelled include:
- Secured and unsecured loans
- Real estate leases
- Supply and vendor contracts
- Loan contracts
- Executory contracts
What Are the End Results?
If the court approves a Chapter 11 plan of reorganization, the company will continue to operate as a profitable entity. If the company is unable to reorganize, the bankruptcy court may approve a plan of liquidation. This process may take anywhere from several months to more than a year.
Contact Bunch & Brock, Attorneys at Law
Safeguard your business’ financial future by contacting an experienced lawyer at the law offices of Bunch & Brock.