How do I petition for Chapter 11?
On behalf of Furr & Cohen, P.A. posted in Chapter 11 on Thursday, July 7, 2016.
When your business is having more than minor trouble, and debtors are getting more aggressive, and your strategies begin feeling desperate, you may know bankruptcy is your best option, but you may have no idea how to go about the process. What are the first steps? Do you have to qualify? What does it mean for the future of your business? All of these are valid questions and are not uncommon. And in some cases, an involuntary petition may be filed. This means one or more creditors may have filed a petition for you to enter into Chapter 11 bankruptcy.
Once a petition is filed, regardless of whether it is done by the creditor or the debtor, your business will carry on, per its routine, while the bankruptcy court will begin to supervise. At this point, you will want to put serious effort into figuring out how best to begin paying back creditors creditors. The repayment totals will usually be significantly less due to the bankruptcy filing. In some cases, you may come across a debt you dispute all or in part, and in that case you can contest the debt.
Throughout the process of repayment, the court will keep a trained eye on your progress as you submit operating reports on a monthly basis.
What is so great regarding Chapter 11 is that unlike a Chapter 7 filing, it is designed to get your company back to profitability. With the promise of diminished debts that become more manageable and profitability to return, a Chapter 11 bankruptcy may be just what your struggling business needs. A Florida bankruptcy attorney should be able to answer more in-depth questions and assist you in ensuring the financial strategy you employ, offers the greatest benefit to you.