Las Vegas Chapter 11 Bankruptcy Lawyers
Businesses and individuals can file under Chapter 11. In general, individuals who file under Chapter 11 have debts that exceed the Chapter 13 debt limits or assets that are high-value and complex.
Cases in Chapter 11 are reorganization bankruptcies. Chapter 11 is similar to a Chapter 13 case in many ways, but it is on a much larger scale. Also, Chapter 11 plans are more flexible than Chapter 13 plans to allow corporations to restructure their debts to remain open.
What Is A Chapter 11 Bankruptcy Case?
Most debtors in Chapter 11 are corporations who need bankruptcy assistance to remain open. The companies cannot afford to pay their debts and remain open. There could be a variety of reasons why the company is experiencing a financial hardship, such as a downturn in the economy, tried to expand too quickly, or overuse of credit.
In most cases, a debtor in Chapter 11 retains control over the assets of the company. The debtor proposes a Chapter 11 plan to its creditors that explains how the debtor intends to restructure the debts. Creditors vote for or against the plan. The debtor must work with creditors to obtain the necessary votes in favor of the plan. This process can be complicated, and it requires the assistance of a Las Vegas Chapter 11 attorney who has extensive experience handling Chapter 11 cases.
When the Chapter 11 plan is confirmed, it becomes a new binding contract with the creditors. A Chapter 11 debtor must comply with the terms of the Chapter 11 plan until the debts are paid in full, or the creditors can pursue legal actions to collect the debts.
Benefits of Filing a Chapter 11 Bankruptcy Case
If your company is struggling to remain open, a Chapter 11 bankruptcy case can help. Some of the things that a business can do in Chapter 11 include, but are not limited to:
- Improve cash flow;
- Stop lawsuits and collection efforts;
- Restructure secured debts to keep equipment, machinery, and other collateral;
- Reduce debts;
- Resolving tax debts;
- Reject burdensome executory contracts and lease agreements;
- Remain in control of the company; and,
- Keep the business operating instead of closing the doors and liquidating the assets.
A Chapter 11 bankruptcy case has many advantages, but it is also the most complicated chapter of bankruptcy to navigate. A business needs an experienced Nevada Chapter 11 bankruptcy lawyer to provide legal advice, guidance, and support. Having an experienced Chapter 11 attorney to help plan and execute the Chapter 11 filing increases the chance of success. It also ensures that every step you take during the Chapter 11 process is done in your best interest.
Special Rules for Chapter 11 Cases
Unlike Chapter 7 or Chapter 13 bankruptcy cases, there are special rules that apply in Chapter 11 cases. You must know, understand, and follow these rules for a successful reorganization under Chapter 11. The rules can be slightly different for corporations, partnerships, and individuals. Prefiling preparation is the key to success in a Chapter 11 case.
Because of the complexity of Chapter 11 bankruptcy cases, these are not “do it yourself” bankruptcy filings. Debtors require the assistance of an experienced Las Vegas business bankruptcy lawyer. An attorney must be familiar with the Chapter 11 process, the particular rules that apply in Chapter 11 cases, and the ability to negotiate with creditors and argue in front of bankruptcy judges to advocate for your best interests.
Contact Our Las Vegas Chapter 11 Bankruptcy Attorneys to Discuss Your Options
If you want to succeed in a Chapter 11 bankruptcy case, your first step is to hire an attorney who knows Chapter 11 bankruptcy law. The business bankruptcy lawyers at Your Vegas Lawyers, LLC, have extensive experience handling Chapter 11 bankruptcy cases. We can help you save your business and formulate a plan that gives you the best chance of success and future growth.
Contact our office today to schedule your free consultation with an experienced Las Vegas Chapter 11 bankruptcy lawyer.