Bankruptcy Lawyer - Chapter 11

Is Your Business in Financial Distress?

Do you feel like closing the doors and liquidating your business may be the only answer?

As a business owner you may want to file bankruptcy if your company has credit problems that you just cannot solve. This is a difficult decision to make and a business owner should get legal advice before taking any action. Our bankruptcy attorneys can help you decide your best options.

In a business setting, there may not be quite the stigma of filing bankruptcy. In fact, bankruptcy can actually be an effective tool in saving your business.

For example, a Chapter 11 bankruptcy can provide for restructuring or consolidating debts. A distressed business may be able to work with its creditors before filing bankruptcy to develop a plan of reorganization, and then use bankruptcy as a means to put the plan in place.

A Chapter 11 business reorganization can:

• Give your business a fresh start
• Stop creditors from pursuing your business for payment
• Help you restructure business debt
• Provide one forum to resolve all financial problems
• Obtain better trade terms or prevent creditors from changing trade terms
• Reinstate defaulted debt

Frequently Asked Questions about Arizona Chapter 11 Bankruptcy

Who may file under bankruptcy Chapter 11?

Legally, anyone except a governmental agency, an estate, a non-business trust, a stockbroker, a commodity broker, an insurance company, a bank, or an SBA-licensed small business investment company may file under Chapter 11. An individual may not file under Chapter 11 if he or she has had another bankruptcy case dismissed upon certain grounds within the last 180 days. As a practical matter, Chapter 11 is available to virtually any business or person able to afford the expenses of the case.

Are there any financial or insolvency requirements for filing under bankruptcy Chapter 11?

No. There are no financial or insolvency requirements for filing a voluntary Chapter 11 bankruptcy case other than the good faith requirement that the case be filed primarily for purposes of reorganization. A voluntary Chapter 11 debtor may be solvent or insolvent, its assets may exceed its liabilities by any amount (or vice versa), and its income may be substantial or nonexistent.

Are there any restrictions on the size or type of business that may file bankruptcy under Chapter 11?

No. A business filing under Chapter 11 may be very large, very small, or anywhere in between. Under Chapter 11, a business may be a sole proprietorship, a partnership, a limited liability company or a corporation of any size.

Does a person have to be engaged in business to qualify for Chapter 11 bankruptcy relief?

A person does not have to be engaged in business in the traditional sense to obtain Chapter 11 relief. A consumer is legally eligible to file under Chapter 11. As a practical matter, however, the person filing under Chapter 11 must have something to reorganize, rehabilitate, or liquidate before Chapter 11 relief can be granted. A debtor with substantial personal investments or assets may use Chapter 11 to reorganize or liquidate his or her investments or assets, even if he or she is not engaged in business in the traditional sense.

Is Chapter 11 Bankruptcy similar to a Chapter 13 Bankruptcy?

In the case of individuals, an Arizona chapter 11 bankruptcy bears some similarities to chapter 13 bankruptcy. For example, property of the estate for an individual debtor includes the debtor's earnings and property acquired by the debtor after filing until the case is closed, dismissed or converted. Funding of the plan may be from the debtor's future earnings; and the plan cannot be confirmed over a creditor's objection without committing all of the debtor's disposable income over five years unless the plan pays the claim in full, with interest, over a shorter period of time.

What are some examples of debts that cannot be discharged?

• debts for alimony and child support
• certain taxes
• debts for certain educational benefit overpayments or loans made or guaranteed by a governmental unit
• debts for willful and malicious injury by the debtor to another entity or to the property of another entity
• debts for death or personal injury caused by the debtor's operation of a motor vehicle while the debtor was intoxicated from alcohol or other substances
• and debts for certain criminal restitution orders

The debtor will continue to be liable for these types of debts to the extent that they are not paid in the chapter 11 case.

There are many more questions to be answered when deciding if an Arizona chapter 11 bankruptcy is the right choice for you.

Let us help you reorganize and save the business, assets or investments you have worked so hard to build!

Contact us today for your FREE Arizona chapter 11 bankruptcy consultation.

We are a debt relief agency.
We help people file for debt relief under the United States bankruptcy code.