Birmingham Chapter 11 Bankruptcy Attorneys
Business Debt Lawyers In Alabama
Chapter 11 – This chapter of the Bankruptcy Code generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time.
People in business or individuals can also seek relief in chapter 11. Chapter 11 is frequently referred to as a “reorganization” bankruptcy. A chapter 11 can sometimes be used as an effective way to allow the debtor to remain in business as a viable entity, while getting better repayment terms than were offered prior by the creditors outside of bankruptcy.
A chapter 11 imposes a “stay” on all collection efforts imposed by the creditors, which will allow the debtor an opportunity to propose their plan of reorganization and is vitally important at the initial stages of this bankruptcy. Creditors are appointed to different “classes” (e.g., priority, secured and unsecured), and they all get a vote on whether the plan of reorganization is feasible, desirable and whether or not it will satisfy their claim (debt).
Contact A Chapter 11 Bankruptcy Lawyer TODAY for HELP!
Chapter 11's involve many tactical and procedural hurdles and obstacles. It is best to speak with an attorney who is trained on these matters before going at it alone.