Madisonville Chapter 11 Bankruptcy Attorney
40 Years of Personable and Compassionate Experience in Bankruptcy Law
As a bankruptcy attorney in Madisonville, I have 40 years of experience walking clients through their bankruptcy concerns. Particularly if you are an individual or business seeking to file for Chapter 11 bankruptcy, I can help you evaluate the financial picture of your business and how you might plan an appropriate (and court-satisfactory) reorganization plan for repaying the debts in question.
As in any legal process, it is best to have the counsel and guidance of a skilled and knowledgeable legal professional so that you are fully aware of all the aspects and consequences of your legal decision. That is a job I take very seriously for all my business clients, and you can trust that the moment you walk through the doors of The Law Offices of Mark Little, you will be met with personable, compassionate, and professional legal guidance every step of the way.
What Is Chapter 11 Bankruptcy?
Chapter 11, or “reorganization,” is a bankruptcy filing usually pursued by businesses and commercial enterprises. It involves a reorganization of a debtor’s business affairs, debts, and assets, and it is primarily the option for businesses who wish to continue their operations while repaying creditors through a court-approved reorganization plan. So, in most Chapter 11 cases, the debtor, or “debtor in possession,” will run their business as usual, unless the case involves fraud, dishonesty, or gross incompetence, in which case a court-appointed trustee will run the business operations throughout the bankruptcy proceedings.
Note that while a business may operate as usual, it cannot make certain decisions without the permission of the courts, such as the sale of assets, starting or terminating a rental agreement, and stopping or expanding operations.
The Reorganization Plan
The most integral part of a Chapter 11 bankruptcy filing is the reorganization plan, where the individual or business will outline how it plans to repay its debts. This could be by downsizing business operations to reduce expenses or renegotiating of debts. In some cases, plans may involve liquidating all assets. The debtor should file the reorganization plan within 120 days after a bankruptcy petition has been filed. The court will then decide to approve or disapprove the feasibility of the plan. If it is approved, the debtor can reduce their debts by repaying a portion of them and discharging the rest. At this point, the debtor can also end burdensome contracts and leases, recover assets, and revamp its operations to become more profitable.
Subchapter V for Small Businesses
In February of 2020, the Small Business Reorganization Act of 2019 added Subchapter V to Chapter 11 directly addressing small businesses (generally, businesses with less than $2.7 million in debt). According to the Department of Justice, the Act sets “shorter deadlines for completing the bankruptcy process, allows for greater flexibility in negotiating restructuring plans with creditors, and provides for a private trustee who will work with the small business debtor and its creditors to facilitate the development of a consensual plan of reorganization.”
Let Me Help You Strategize Your Reorganization Plan
I have been helping Madisonville clients with bankruptcy filings for 40 years. Whether you have legal questions about the Chapter 11 filing process or how your eligibility, I can provide you the sound advice you need. I can help you devise an appropriate reorganization plan for your business in a Chapter 11 filing, and I will ensure that you are fully informed about the Chapter 11 process and your debt relief options that best suit your needs.