Chapter 11

Bankruptcy is the type of Bankruptcy application that is used by businesses that have become insolvent. It is the type of Bankruptcy that you hear about when large corporations, GM, for example, need to declare bankruptcy, although it can be used for small businesses as well. It is not for consumer bankruptcy, Chapter 7, for example. 

Chapter 11 Bankruptcy allows corporations to reorganize their debts in a way where they can pay off those debts differently. This can be either through having the amount of those debts lowered, changing the priority of debt payment, eliminating certain debts or even selling off assets to pay debt down. Chapter 11 Bankruptcy can allow a business to keep operating with the goal of once again becoming solvent and making a profit. 

Chapter 11 is more complicated and time consuming than other types of bankruptcy, especially consumer bankruptcy. For this reason, retaining a specialist in Chapter 11 Bankruptcy is best. Contact us for more information.