Chapter 11 Bankruptcy

DuPage County Chapter 11 bankruptcy lawyers

Serving clients in Cook, DuPage, Lake, Kane, Kendall and Will Counties from three convenient locations: Lombard – Bloomingdale – Chicago

Generally used by businesses but also open to individuals, Chapter 11 offers more flexibility than any other type of bankruptcy and involves reorganization of debt so a business can stay in operation. Unlike Chapter 13 bankruptcy, Chapter 11 has no restriction on the amount of debt involved but can be beneficial in cases of low debt. Sole proprietorships, unincorporated businesses, partnerships and corporations all frequently use Chapter 11.

When an individual or business is looking to buy time to deal with past-due taxes or to resolve financial problems by selling an asset, Chapter 11 might suit their needs. Individuals with large debt and considerable assets who do not meet the strict limitations of Chapter 13 bankruptcy also often consider Chapter 11.

Arrange a free consultation. Call our law firm toll-free number 630-932-9100 or Contact a bankruptcy attorney online.

How Chapter 11 Works

Under the Bankruptcy Code and Federal Rules for Bankruptcy Procedure, the debtor in possession (person or business filing Chapter 11) is assigned the position of a fiduciary and given the rights and powers of a Chapter 11 trustee. A debtor in possession is required to:

• file a plan of reorganization and a disclosure statement;
• handle accounting for property;
• examine and object to claims;
• file monthly operating reports, tax returns and reports on final accounting;
• hire professionals as needed (attorneys, accountants, appraisers, auctioneers, etc.).

Once a disclosure statement and plan of reorganization have been filed with the court, a hearing is held to determine if adequate information exists for creditors to vote on the proposed reorganization plan. Simply stated, the plan is a contract between the debtor in possession and creditors stipulating how creditors will be repaid and through what source. A certain percentage of creditors must vote in favor of the plan. Also, in some cases, other requirements could force the creditors to accept the plan.

Managing Chapter 11 requires excellent financial and legal skills. A bankruptcy lawyer experienced in dealing with Chapter 11 is invaluable for explaining the nuances along with the ways to formulate a plan based on Bankruptcy Code limitations.

The bankruptcy lawyers at the Law Offices of Steven H. Mevorah & Associates have decades of experience helping clients with Chapter 11 bankruptcy and encourage you to arrange a free consultation with one of our bankruptcy attorneys. Find out how Chapter 11 might help with financial issues concerning your business.

Arrange a free consultation. Call our law firm toll-free number 630-932-9100 or Contact a Bankruptcy Attorney Online.

Pursuant to 11 U.S.C. §528, Steven H. Mevorah & Associates, P.C. is considered a debt relief agency. We will proudly help you file for bankruptcy relief under the Bankruptcy Code if we believe it is in your best interest.