If Your Business Has Significant Debts and Significant Assets
While Chapter 11 is often thought of primarily as an option for large corporations, Chapter 11 bankruptcy may also be an option for smaller and medium-sized businesses that have value as an ongoing enterprise, but are overwhelmed by debts or burdensome contracts. Chapter 11 bankruptcy is also an option for individuals who have too much debt to qualify for a Chapter 13 debt repayment plan.
I am Neil Warrenbrand, a bankruptcy lawyer with an office in Boston and meeting locations throughout the Greater Boston, Metro West and North Shore areas, who helps small- to medium-sized businesses and individuals in Massachusetts file Chapter 11 bankruptcy. I offer a free initial consultation to discuss your financial situation and determine if filing Chapter 11 bankruptcy is the best option for you.
What Will Filing Chapter 11 Bankruptcy Do for My Business?
If your business files Chapter 11 bankruptcy, in most cases you will be able to continue to operate under the supervision and protection of the Bankruptcy Court. Upon filing a Chapter 11 petition, your business must provide a complete statement of all assets and liabilities.
Additionally, your business must eventually propose a plan showing how outstanding obligations can be repaid. Your creditors have the opportunity to vote on the plan. The automatic stay that enters upon filing Chapter 11 bankruptcy can give you time to reorganize your business and financial affairs, and may put you in a stronger position to negotiate with creditors. Even if Chapter 11 is not the right choice for your business, your business may be able to seek bankruptcy protection under Chapter 7 or Chapter 13.
Do I Have Personal Liability for Business Debts?
Even if you created a limited liability company (LLC) or corporation to safeguard your personal assets from business debts, you may not be as protected as you think. If you personally guaranteed any contracts, these debts cannot be discharged in a business bankruptcy.
Consult With an Experienced Bankruptcy Attorney
To discuss Chapter 11 bankruptcy with a lawyer experienced in every aspect of bankruptcy, call 866-959-9065 or fill out the contact form on this Web site to schedule your free initial consultation. My office is conveniently located in downtown Boston and is accessible by all T lines. I also have meeting locations throughout the Greater Boston, Metro West and North Shore areas to best serve my clients' needs.