If your business is struggling and you’re drowning in debts that could force you to close up shop, get in touch with a qualified Terre Haute Chapter 11 bankruptcy lawyer who can help you formulate a plan for repayment.
For business owners or corporations who hope to keep their doors open despite being burdened by ever-increasing debts, Chapter 11 bankruptcy can be an excellent tool to make good on prior debts and pull yourself out of financial distress and into a place where you are able to make a profit again.
If you’re ready to take the first steps toward financial freedom by declaring Chapter 11 bankruptcy, contact an experienced Terre Haute Chapter 11 lawyer at Rowdy G. Williams Law Firm today.
Who Files for Chapter 11?
Chapter 11 is usually the bankruptcy option chosen by business owners and corporations who are hoping to correct and repay their debts and remain open. It can be used by small or large businesses and allows for the debtors to propose a reorganization plan that will enable them to pay off their debts over a specified and agreed-upon period.
Chapter 11 Bankruptcy Explained
When you first file for Chapter 11 bankruptcy in Terre Haute, you’ll begin by submitting a disclosure statement, or a list of your income and expenses, assets and liabilities, all current debts that haven’t expired, and a financial statement of your affairs.
You will also include your most recent tax return, a certificate stating that you have completed credit counseling, any plan of repayment that might have been established during counseling, and evidence supporting your statement of your net monthly income. Expect to pay some money to cover administrative costs and filing fees.
Chapter 11 is very similar to Chapter 13 bankruptcy in that the debtor, or “debtor in possession,” will be able to retain possession of his or her assets while establishing a plan of reorganization or repayment without the need for a case trustee, which is someone who oversees your bankruptcy case and will sell remaining property when necessary.
Once your case has been filed, an automatic stay is enacted. This is where creditors are temporarily unable to pursue any collection activities, such as repossessions, foreclosures, and other judgments. A stay will give you the opportunity to negotiate your contracts with current creditors and resolve any disputes or misunderstandings you might have.
A Chapter 11 lawyer in Terre Haute can further explain these concepts and answer any questions you have.
The Plan of Reorganization
The debtor in a Chapter 11 bankruptcy case will be able to formulate his or her own plan of repayment or reorganization to be submitted with the disclosure statement. These plans generally consist of a complete list of all creditors and a plan for how each will be paid over a period of time.
Creditors whose contracts will not be fulfilled or will need to be modified will have the opportunity to vote on your plan of reorganization before approval. If creditors disagree with your proposal, we may need to modify it to meet their requests and have your plan approved by the courts.
After initially declaring Chapter 11, you’ll have 120 days to submit your plan of reorganization. Then, your creditors will have the option of submitting a competing plan if they disagree with your proposed terms. A Chapter 11 attorney in Terre Haute can help you through every step of this process.
When your plan of reorganization has been approved, it is considered binding. You’ll be required to make the agreed-upon payments. When you are found to have met the obligations of this new contract, you’ll be discharged from your former debts. This is when your creditors are no longer able to engage in further attempts to collect your debts.
In rare cases, when you are unable to meet the demands of your plan of reorganization, the court may issue you a hardship discharge, in which your debts will be discharged and creditors become unable to proceed with collection.
However, this is rare and usually only done if the hardship is through no fault of your own and the creditor has already received as much as or more than it would have if you had filed for Chapter 7 bankruptcy.
You can expect your Terre Haute Chapter 11 case to be closed when all payments have been met, your debts have been discharged, and the court issues a “Final Decree” that your estate is officially and fully administered.
Speak with a Terre Haute Chapter 11 Attorney
If you are a business owner who is considering filing for bankruptcy but aren’t sure which option would best suit your needs, contact a qualified Terre Haute Chapter 11 lawyer at Rowdy G. Williams Law Firm. We will be able to discuss how Chapter 11 will work for you. Give us a call at 1-812-232-7400 or fill out the contact form below to schedule your free consultation today.