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West Palm Beach Florida
Chapter 11 Bankruptcy

West Palm Beach Chapter 11 Attorney

Owning a business is both rewarding and stressful. Besides focusing on the daily operations, staffing, expenses, and customer service, you constantly must worry about the bottom line. When there just is not enough money coming in, debt begins to build. One of the most challenging decisions a business owner must make is whether or not to file for Chapter 11 bankruptcy. A West Palm Beach Chapter 11 attorney can answer all your questions. Let Brian McMahon put his 30+ years of experience to work for you.

Restructuring Debts Under Chapter 11

When a business needs to file for Chapter 11, it does so by reorganizing its debts with the help of the United States Bankruptcy Court. In many cases, the company will be able to remain operational during the bankruptcy proceedings. The most common types of businesses that file for Chapter 11 include limited liability companies, partnerships, and corporations.

It is possible for an individual to file for Chapter 11, but only if they fail to qualify for Chapter 7 or Chapter 13. The individual likely has a lot of insurmountable debt that cannot be reorganized or paid off with a plan using the other two bankruptcy options available. Chapter 11 is a long process, so be prepared for it to take months to resolve.

Business as Usual When Filing for Chapter 11

One of the biggest advantages of filing for Chapter 11 is that the business can continue to run as usual in most instances. However, if there was fraud or gross incompetence present, the business could be assigned a trustee by the bankruptcy court. The company will continue to operate but at the direction of the trustee.

Even if there is no trustee appointed, the business will only be able to make certain decisions with the assistance of the court. The decisions that must be approved by the court include the following:

Finally, the company is not permitted to secure a loan that will begin once the bankruptcy process has ended.

The Business Proposes an Initial Reorganization Plan

Another benefit of filing for Chapter 11 is that the business has the initial advantage of filing a reorganization plan. Most reorganization plans might include the following:

If the proposed reorganization plan is deemed fair by the creditors and the court, the court will officially accept it, and the process begins. Do not miss a single payment due date to any of your creditors, as this can significantly impact the bankruptcy filing in a negative way. If you have trouble repaying your creditors, speak with an attorney immediately.

Chapter 11 Bankruptcy Timeline

The timeline for Chapter 11 bankruptcy can last for years. There are no finite dates for this bankruptcy option, which means it can take anywhere from a couple of months to years for it to come to a resolution. Most Chapter 11 cases resolve anywhere from six months to two years, while some can be resolved in a much quicker fashion. If your case is complex, with a large amount of debt, it can take upwards of five years to complete.

The Pre-Confirmation Stage

The initial part of Chapter 11 is known as the pre-confirmation stage. This is when the filer has four months after the filing date to come up with a reorganization plan. In most cases, the deadline can be extended to six months.

The Post-Confirmation Stage

After the reorganization plan is put into place, the filer has anywhere from 30 to 90 days to start making payments to its creditors. The payments are usually extended over a long period because they must be made in a set order. The order is as follows:

Filing Chapter 11 as an Individual

An individual can file for Chapter 11 if they meet one of the following requirements:

The biggest advantage of filing Chapter 11 as an individual is that it allows you to lower the interest rate and extend the terms of repaying the debt. This means that your monthly payments will be lower than originally thought at the beginning of the process.

How Can a West Palm Beach Chapter 11 Attorney Help?

If your business is swimming in debt, it is in your best interest to speak with a West Palm Beach Chapter 11 attorney as soon as possible. An attorney can help you with all of the following:

It is important to note that a Chapter 11 bankruptcy filing, if approved and completed, will remain on your credit report for at least seven years. This can significantly hinder your company’s ability to apply for loans and even start new businesses.

Call Brian McMahon for Chapter 11 Advice Today

Do you have questions about your company’s debt? Are you ready to explore your bankruptcy options? If so, it is time to speak with an experienced West Palm Beach Chapter 11 attorney. Call Brian McMahon at 561-658-1789, or complete the contact form to schedule a free consultation. We serve clients in West Palm Beach, Port St. Lucie, Boca Raton, and all of South Florida.

Get Professional Advice from the Law Offices of Brian McMahon’s West Palm Beach Bankruptcy Attorney Today

Everyone knows that bankruptcy is intimidating. After completion, though, an individual or business has the fresh start they need. The courts can discharge or reorganize debts, and the debtor has the relief of knowing that their finances are back under control.

We strongly advise anyone considering filing bankruptcy to hire one of our top West Palm Beach Chapter 7 bankruptcy attorney. We can assist with the legal process and give the assurance that everything will work out with us as a teammate. Our attorneys take all claims and matters seriously; we don’t take bankruptcy lightly. All our clients can attest that our services are second to none and our success rates are exceptional. Give us a call now for help filing bankruptcy. Our legal team of experts fights for justice. No one deserves to suffer the wrath of debt with no way out. Let us do the legwork and take bankruptcy head-on.

Call our office at 561-658-1789 for help filing bankruptcy. We serve West Palm Beach, Port St. Lucie, Boca Raton, and all South Florida.