Debt can be overwhelming and stressful. Bankruptcy might be the best solution for you to discharge or reduce your debt. At Hubbell Duvall, we have the experience to help you make sure that you are making the right choices when it comes to dealing with the bankruptcy process. Our attorneys will provide expert advice to ensure that you find the best solution for you and your family or business.
Chapter 11 bankruptcies are for companies that wish to remain in business after filing bankruptcy. Chapter 11 is a reorganization bankruptcy that gives a business a payment plan with which to discharge debts. This gives you an opportunity to restructure your business to become solvent, unlike a Chapter 7 bankruptcy. In a Chapter 7 bankruptcy, a business would be forced to close and liquidate their assets in order to discharge their debts. In a Chapter 11 bankruptcy, many companies are able to get back on their feet within a few months or a few years depending on the negotiated repayment plan.
A Chapter 11 bankruptcy is a process that can take 3-5 years. An automatic stay against collections will begin as soon as your case is filed, which provides a business time in which to come up with a reorganization and repayment plan. The repayment plan will be negotiated with the businesses creditors, and generally will take place over the 3-5 year timeframe. A company may stay in business during this time.
The goal of a Chapter 11 Bankruptcy is to become a profitable business again. The businesses creditors agree to the repayment plan that is negotiated in a Chapter 11 bankruptcy. It is in their advantage to negotiate a repayment plan with the business in order to recoup some of what is owed to them. Like a Chapter 7 Bankruptcy, upon conclusion of your Chapter 11 bankruptcy, all debts will be forgiven and cannot be collected again.
The attorneys at Hubbell DuVall are among Michigan’s leading experts in bankruptcy cases. Contact us today and we will provide expert advice to ensure that you find the best solution for your business.