Experienced Help Through Chapter 11 Restructuring
Managing a business can be challenging, but doing so while also managing immense debt can be complex. At Jones & Walden, LLC, in Atlanta, we’ve dedicated our practice to helping business owners in Atlanta and surrounding areas successfully address their debt problems through Chapter 11 bankruptcy. We understand what’s at stake for business owners, which is why we analyze the full scope of the problem before suggesting the best bankruptcy options to our clients.
You can rest assured knowing we have the skills necessary to handle all of your sophisticated legal needs because our guidance and counsel are backed by extensive experience handling the wide range of business-related legal matters that can arise when filing Chapter 11. At Jones & Walden, LLC, we pride ourselves on providing personalized representation without sacrificing experience. It’s one of the many benefits you’ll see when you work with our attorneys.
Understanding Chapter 11 Bankruptcy For Businesses
Through Chapter 11, businesses can restructure or reduce debt through a plan of reorganization (i.e., repayment plan.) The business proposes a Chapter 11 plan to the court in order to restructure its financial obligations by modifying payment terms and reducing payment amounts.
By filing Chapter 11, businesses gain the protection of the bankruptcy court and receive temporary breathing room from creditors.
Chapter 11 Is Not Without Its Complexities
The ability to run your business without the immediate threat of aggressive collection efforts can be incredibly beneficial to business owners because it gives them the ability to redistribute resources while forming a plan to turn the business around. In the end, this benefits creditors as well by maximizing the return on a debt and potentially preserving equity.
Under Chapter 11, businesses also have the option of selling off assets to reduce debts, funding a reorganization plan or conducting a liquidation of desired assets. Flexibility in proposing repayment terms and creditor treatment is the hallmark of Chapter 11.
However, Chapter 11 is not without its own complex rules and requirements. Most importantly, a plan of reorganization must be feasible and fair, filed in good faith, and in the best interest of creditors.
When the court approves of the proposed plan of reorganization, they refer to it as “confirmation” of the plan. Confirmation binds all affected parties to the terms of the plan, though certain debts may be nondischargeable and survive after the plan payments are completed.
Understanding Chapter 11 Bankruptcy For Individuals
Chapter 11 was originally the chapter of “corporate reorganization,” but later became available to individuals as well. In light of the historical purpose and due to the piecemeal amendments to Chapter 11 over time, Chapter 11 is not necessarily well-tailored to the needs of an individual debtor. Therefore, handling an individual Chapter 11 is sometimes like “fitting a square peg in a round hole,” thus the need for Chapter 11 bankruptcy attorneys.
A Chapter 11 case puts the individual in charge of his or her own bankruptcy estate as the “debtor in possession.” In that capacity, the individual can propose a plan of reorganization to the court based on available assets and cash flow. Moreover, if an individual’s debts exceed the Chapter 13 debt limits or if the individual does not have regular income, a Chapter 11 case may be the best or only option. This is also true if the person plans to fund a reorganization by the sale of assets or anticipated future income.
Chapter 11 bankruptcy for individuals is an area of particular interest to Jones & Walden, LLC, and our attorneys have obtained confirmation of many of our clients’ plans.
For an article prepared by one of our attorneys on the unique rules and requirements in Chapter 11 cases filed by individuals, click here.
Put Our Skill And Experience To Work For You
The highly experienced lawyers at Jones & Walden, LLC, are well-equipped to handle both individual Chapter 11 and business Chapter 11 cases and have decades of experience representing both borrowers and lenders in Chapter 11 cases throughout Georgia. Because of our diverse legal backgrounds and experience handling a wide variety of bankruptcy-related business and personal legal matters, we are sure we can help you resolve any issue, no matter how complex it may seem.
If you would like to learn more about Chapter 11 bankruptcy or other bankruptcy options to determine which is best for you, we encourage you to contact our Atlanta office. To schedule a consultation with an attorney, call 678-701-9235 or contact us online.