What Documents Are Needed When Filing for Chapter 11 Bankruptcy?
Chapter 11 bankruptcy is necessary when a company has more debt than income and may need to restructure the business to survive. Some companies choose full liquidation of assets, which requires a complete itemization of valued possessions. Other businesses that choose to restructure may not need to present everything to the courts at first glance. It is best to contact a Dallas bankruptcy attorney with Pronske & Kathman if your business is facing bankruptcy. A lawyer can provide guidance for a smoother process.
Why do companies file for Chapter 11 bankruptcy?
Total insolvency is not the only reason that companies file for bankruptcy. Some businesses need to undergo reorganization and require protection from creditors to proceed with the process of restructuring. Chapter 11 bankruptcy often comes with the benefit of companies having the option of paying creditors over time instead of in lump sums, which may not be possible in times of financial hardship.
Some businesses will never have enough assets to repay creditors even with additional time. These companies may file for bankruptcy in the hope of merging with another corporation that is presently thriving.
What documents are needed for bankruptcy?
Businesses seeking Chapter 11 bankruptcy should be prepared to show proof of their inability to pay debts. It is a good idea to show your Dallas bankruptcy attorney bank statements or financial logs that clearly show a gap between income and debts owed.
Businesses seeking Chapter 11 bankruptcy should also show documentation that presents plans for restructuring and paying debts. Even those companies seeking total liquidation under bankruptcy should provide a basic log of how much debt would be paid after selling all things related to the company.
Do not seek Chapter 11 bankruptcy on your own. Let the attorneys at Pronske & Kathman guide you through the process so that your request faces a better chance of being approved by a judge. Call today to schedule a consultation.