Chapter 11 Business and Personal Bankruptcy

Chapter 11 Business Bankruptcy allows a business to reorganize their debts into manageable payments. Each case is different. Chapter 11 is a good idea for a business that maybe overwhelmed with unsecured debt and just can’t make the payments demanded by each creditor. It allows a viable business to reorganize these debts into manageable payments and in a lot of case eliminates most unsecured debts. Chapter 11 is more powerful than a regular chapter 13 bankruptcy in it allows business owners who have secured liens against property, real or personal, to cram down the loan to the present value of the property and lower the interest rate and extend the terms. The growing trend in chapter 11 is for landlords with multiple rental properties to file. The chapter 11 allows each property that is viable or rentable to start fresh by cramming the mortgage down to the present value of each house, reducing the interest rate and extending the life of the loan. Another growing trend is for small business who generally would have just filed chapter 7 liquidation bankruptcy now are filing chapter 11 to save the business. The business just needs to be viable. Meaning, it just needs to be able to show that it would be profitable if it just didn’t have so much debt. There are a lot of nuances to all cases but before throwing in the towel, contact our office for a free consultation so we can see if chapter 11 is the right solution to your financial problems.