Chapter 11 Small Business Reorganization
Chapter 11 reorganization is a strategy to keep a business operating and deal with your creditors through a payment plan approved by the U.S. Bankruptcy Court. Our firm only represents small, local businesses under Chapter 11.
In order to be successful under Chapter 11, the business must have sufficient revenue to continue operations. The major limitation of this type of reorganization is when a business is not generating enough top-line revenue to fund ongoing operations and some debt service. If there is not enough top-line revenue, then mathematically the model is unsustainable and a liquidation under Chapter 7 is the proper remedy.
Chapter 11 cases vary in their character and complexity based on the nature of the business, its legal structure and the amount and types of debt owed by the entity. We will meet with you to determine if Chapter 11 is appropriate and map out a strategy to successfully emerge from a bankruptcy reorganization as an ongoing venture.
Please remember that this is a very basic description of bankruptcy law and not legal advice. We can discuss your situation in detail during a free, confidential consultation with an attorney who will explain how bankruptcy law fits your specific situation. Contact us today at www.meredithlawfirm.com to schedule an appointment at your convenience. We are a debt relief agency.