Chapter 11 Bankruptcy: What You Should Know
When you have to file for bankruptcy, Chapter 11 is one of your options. Generally, businesses rely on it as a way to reorganize their finances and remain open to continue operating. Meanwhile, the business owner can get a better option for paying off their debts. Individuals can also file Chapter 11.
You can begin a Chapter 11 case by filing a petition in bankruptcy court. Generally, this is a good option if you owe a sizable debt and want a better option for paying back your debt. In some cases, however, creditors may team up to file a petition against the debtor.
Generally speaking, there is no way to know how long a Chapter 11 bankruptcy case might take. It could be only a few months or as long two years.
Unlike with Chapter 7 bankruptcy cases, Chapter 11 doesn’t involve a trustee overseeing the case. The individual who files is free to continue operating their business. However, the court can appoint a trustee if there is reasonable cause, such as the debtor being incompetent or fraudulent.
Although the debtor is free to conduct business after filing Chapter 11, the bankruptcy court is the one making major decisions. The court must approve the following:
• Sale of assets, property or real property
• Breaking a lease or entering into one involving personal or real property
• Financing involving mortgages or other options that let the individual borrow money
• Shutting down or expanding business operations
• Entering into contracts or agreements or modifying them
• Retaining payments to lawyers and other professionals
In general, if you are a business owner and have a large debt that you cannot foresee paying back without help, Chapter 11 bankruptcy is a good option for you. If you are located in Dallas, you can speak with skilled DFW bankruptcy lawyers for vital assistance by turning to Pronske & Kathman. Contact Pronske & Kathman at your earliest convenience to discuss your case with DFW bankruptcy lawyers.