Chapter 11 Bankruptcy Lawyer

 

When, traditionally strong businesses are struggling. Regardless of how it was acquired, mounting debt can threaten your company, and in some cases, your personal wealth. In situations where you have too many creditors for debt settlement but your business has sufficient prospects to continue once the pressure of debt is relieved, Chapter 11 bankruptcy may be a viable option.

Overview of Chapter 11 Bankruptcy

Chapter 11 bankruptcy, also known as “business reorganization bankruptcy,” was designed to leave a business with a viable course of action once the bankruptcy proceedings conclude. The process may be resolved in just a few months, depending on the size and complexity of the bankruptcy. Emerging from Chapter 11 requires you to create a Bankruptcy Plan of Reorganization, which identifies how outstanding debt is restructured, among other criteria. Once the plan is developed, a class of the creditors must approve the plan before it is confirmed by the bankruptcy courts.

A Chapter 11 bankruptcy filing includes an automatic stay that immediately freezes all claims against the company that predate the filing, stops all lawsuits against the company, and precludes creditors from exercising control over the company’s property.

Factors in favor of Bankruptcy and Pertinent Issues

1. Debtor gets Automatic Stay under 11 U.S.C. §362.
2. Although the automatic stay does not apply to non- debtor principals, there is the possibility of obtaining an injunction from the Bankruptcy Court to extend its benefits.
3. Sale of assets free and clear of liens and encumbrances, with such liens to attach to sale proceeds.
4. Under chapter 11, debtor has more control and can seek to reorganize or do an orderly liquidation.
5. Debtor has ability to assume and/or reject executory contracts and unexpired leases, i.e. keep certain good contracts and get out of bad ones.
6. Ability to obtain Bar Orders and releases in appropriate circumstances.
7. Can stretch out payment of certain tax claims over time.
8. Centralized forum for avoidance and other causes of action against third parties.

            Against Bankruptcy and other Issues 

1. Chapter 11 is expensive — attorneys fees for debtor's counsel and those of a creditor committee counsel (if one is appointed); accountants' fees, United States Trustee's fees, and costs for DIP financing.
2. Chapter 11 is time consuming for principals -- compliance with UST requirements and guidelines, and court deadlines.
3. Automatic stay does not apply to protect lion-debtors such as principals or guarantors.
4. In small business cases, time for making decisions and getting toward confirmation is faster than standard chapter 11.
5. Requirement of analyzing preference and fraudulent transfer causes of action against principals and creditors, including those with whom management may wish to do business with in the future.
6. Lack of control in a chapter 7 case -- appointed or creditor elected trustee has the responsibility of liquidating assets for benefit of creditors, including bringing causes of action against third parties.
7. Possible oversight by a creditors committee in a chapter 11 case, which in many instances, results in questioning of management's business decisions.
8. Court approval needed for anything to occur outside the ordinary course of business.

Why Sidney Turner

• The bankruptcy court has broad discretion to manage the reorganization process, bankruptcy laws are complex, and filings are time consuming – making the quality of representation during proceedings very important. We’ve represented companies filing for Chapter 11 for more than 30 years and have acted as court appointed trustees in Chapter 11 filings – there are few lawyers and law firms with more bankruptcy experience than Sidney Turner.
• We have extensive experience as creditors' counsel and are prepared to provide powerful representation to financial institutions, commercial landlords, investors and other parties at risk of losses during the discharge or reduction of debt.
• Lastly, we know that filing for Chapter 11 bankruptcy isn’t the only option for businesses that have hit a few bumps in the road. We are experienced in debt settlements, business restructuring and other options to help your business not only survive, but thrive.

You’ve worked hard building your business. Seek pragmatic advice to keep your business and protect yourself. Call Bankruptcy Lawyer Sidney Turner at 561.208.6368.

Sidney Turner – Legal Insight, Business Strategy

Sidney Turner LLC is Business and Corporate Lawyer who specializes in Structuring the Setting up or Restructuring of Companies, Buying and Selling of LLC Companies as well as creating Contracts and Agreements for Companies. He also offers legal services for Chapter 11 Bankruptcy, Business Restructuring, and Debt Workouts to corporations, small businesses and startups across South Florida including the Boca Raton, Coral Springs, Deerfield Beach, Ft. Lauderdale, Margate, Tamarac, Davie, Hollywood, Port St Lucie, Palm Beach County , Broward County and New York State.