Chapter 11 bankruptcy is not just for major corporations. Small businesses can file to stay afloat as well. Chapter 11 is very similar to Chapter 13 for individual filers. Both plans allow consumers to reorganize debt and keep the property. Find a lawyer to consult about chapter 11 bankruptcy law in New Market.
Who Can File?
Chapter 11 is an option for companies with a variety of business structures. It’s an option for individuals, corporations, limited liability corporations and partnerships. There are no debt or income qualifications to file under this chapter. However, the lawyer will explain the special rules for small businesses. These filers must be owned by a corporation, LLC or partnership. Additionally, there is a debt limit of $2.56 million. It’s always best to have a lawyer in bankruptcy court. Filing requirements must be followed exactly or the case can be dismissed.
Additional Oversight
Small businesses face a lot of scrutinies when they file. Indeed, there are additional filing and reporting duties. The debtors must attach the latest federal tax return, balance sheet, statement of operations and cash flow statement to the bankruptcy petition. Major corporations do not have a deadline to file a Chapter 11 plan. However, small business debtors must file within 300 days. A bankruptcy lawyer makes sure clients are filing accurate financial documents.
Benefits For The Small Business
Chapter 11 bankruptcy law in New Market has many advantages. Most debtors offer a plan that allows them to reorganize debt and stay in business. Further, the bankruptcy court does not require small business owners to liquidate the property. Likewise, the court allows debtors to sell assets they don’t need to raise capital. One of the major benefits is the ability to restructure mortgages and loans. Businesses can get more time to repay these debts. Moreover, creditors may agree to take less money to settle a debt. Having a lawyer makes it easier to negotiate with creditors. The attorney guides the business through the bankruptcy so it gets a fresh financial start. If your business is struggling, visit a bankruptcy lawyer’s website. Contact us and make an appointment.
