Businesses often face difficult financial times, which can lead to overwhelming levels of debt that leave the owners with no clear path forward. In cases where a business wants to continue operations in the future, a Chapter 11 bankruptcy plan may be the best option. The highly skilled business bankruptcy attorneys from Gillman, Bruton & Capone can work with you on this important development.
In exchange for a court-supervised reorganization of the company, that company is able to discharge most forms of its debts. This can allow the company to continue operations in the future, free from the threat of collections or lawsuits. In addition, merely filing a petition for bankruptcy protection can come with the immediate benefit of an automatic stay on all collection efforts. If you own and/or operate a company that needs to obtain debt relief with an eye towards future operations, reach out to a Chapter 11 bankruptcy lawyer now. With an office located in Edison, as well as others around the state, our attorneys are ready to assist business owners around New Jersey.
Chapter 11 is one of the two main bankruptcy options available to companies in our attorney Edison is ready to review the options available to New Jersey business owners considering this path. Under a Chapter 11 plan, a business is stating that they are no longer able to pay their bills and creditors. The objective of a Chapter 11 bankruptcy is to discharge these debts and obtain a fresh start for the business.
Perhaps the single most important thing to know about a Chapter 11 bankruptcy is that the Bankruptcy Code requires court-supervised reorganization of its financial affairs and debt. A company in a Chapter 11 bankruptcy may need to make changes that are in its best business judgment to restructure its debts. This could require a closure of locations, the liquidation of non-essential assets, or the appointment of a new board of directors. The benefit to these events is that once this reorganization is complete, the Company may be relieved of its duty to pay certain eligible debts, restructure the payment of others, and allow the business to continue operations as management feels would best benefit the company.
With an attorney located in Edison, who is experienced with Chapter 11 business bankruptcy matters can provide more information about these actions and help you decide if this is the right path forward for your business.
The outcome of a Chapter 11 bankruptcy case depends upon the ability of a company to submit a comprehensive and detailed bankruptcy petition and plan of reorganization to the court. Under federal law, the petition includes a list of all debts, a current list of assets, and information regarding the company and its financial affairs. An experienced attorney provides assistance in gathering the necessary documents to submit complete petitions for bankruptcy protection. There is no room for error, which is why having reliable legal counsel is warranted.
The other vital part of a Chapter 11 plan is the proposed reorganization of the business. This is another area where an attorney is prepared to help. In fact, federal regulations give companies seeking Chapter 11 bankruptcy protection the first opportunity to submit a reorganization plan to the court. Allowing a lawyer from our Edison office to craft and submit these Chapter 11 business bankruptcy plans on your behalf could allow you to retain control over the process. We believe it is important for you to maintain some level of control in what is an otherwise distressing situation.
It is not unusual for business, both big and small, to face significant levels of debt. If it has become impossible to see a way out of these difficulties, our Edison Chapter 11 business bankruptcy lawyer is here to help.
We can determine if bankruptcy is the right choice for your business and, if it is, submit the essential paperwork to the correct court. We can also construct a proposal for your company’s reorganization that seeks out debt relief with as little change to your day-to-day operations as possible. Give our team a call now to schedule an appointment and discuss the future of your business.