Bankruptcy - Chapter 11

Saving Businesses With Bankruptcy Re-Organization

If you own a business in Florida and have hit hard financial times, a Chapter 11 bankruptcy may be an option for you. At Seltzer Mayberg, our experienced attorneys are here to walk you through the process, advocate for you aggressively and protect your future as if it were our own.
Chapter 11 can also be used by individuals, although it seldom happens because of legal fees, reporting requirements and expensive court fees. Instead, the process is usually used by partnerships, limited liability companies, corporations and additional business entities.

The Purpose of Chapter 11

Chapter 11 bankruptcy is typically used to aid a business debtor who is in financial distress because of poor management decisions. These companies are often generating revenue but have incurred debt that exceeds operating costs. Chapter 11 is intended to allow the business to discount unsecured debt and restructure secured debt, so the company has a chance to come out of financial hardship successfully.
The process of filing for Chapter 11 bankruptcy is like that of other types of bankruptcy. Court approval is required for any business filing for Chapter 11 to resume day-to-day business operations. It is often chosen over Chapter 7 because the business can continue functioning even as the company is reorganized and restructured to handle debt.
With Chapter 11, the business is given protection against creditors by the court and can keep its assets. Although the business can function, the entity is responsible for creating a plan that outlines how the debt will be handled.