Chapter 11 Bankruptcy

At The Law Offices of Samuel S. Sorota, we take pride in providing effective legal services to our clients.

Who is eligible for Chapter 11 Bankruptcy?

Chapter 11 Bankruptcy has no limitations, debt or income requirements. Although Chapter 11 bankruptcy is available to both individuals and all types of business entities, it is more commonly used by corporations with heavy debt burdens.

Reorganize your debt with Chapter 11 Bankruptcy

Chapter 11 bankruptcy can be used either as a mechanism for liquidation or as a means to reorganize the debtor’s business or personal assets. When you file Chapter 11 Bankruptcy, you’ll be required to have a reorganization plan which must be voted on by creditors and approved by the court. The reorganization plan classifies debtors based on how their claims are handled. Secured and unsecured creditors are also grouped into separate classes.

If the reorganization plan is confirmed by the court, all debts existing before the confirmation date are discharged and creditors would be paid in accordance with the reorganization plan.

Advantages of Chapter 11 Bankruptcy

One great advantage of Chapter 11 bankruptcy is that there is no set limit on the duration of your payment plan. If the debtor requires more time to make the payments set out in the reorganization plan, a bankruptcy may grant the additional time required.

Another advantage of Chapter 11 Bankruptcy is that with the exception of family law matters, the debtor is protected from litigation through the imposition of an automatic stay. The automatic stay prevents collection attempts by the creditors and halts litigation proceedings against the debtor.

Get help from an experienced Chapter 11 Bankruptcy Attorney

Despite its advantages, one disadvantage of Chapter 11 Bankruptcy is that it is complicated and can be expensive. In order to successfully file a Chapter 11 Bankruptcy, you would need the help of an experienced Chapter 11 Bankruptcy Lawyer.

If you or your business is overburdened by debt and considering filing bankruptcy, don’t begin the process without legal help. Consider seeking the advice of a seasoned professional who can guide you through the right path. To take advantage of a free consultation with our Miami Bankruptcy attorney, call us at (305) 652-7777.