For businesses facing huge debts, avoiding closure and liquidation of assets are made possible by filing for Chapter 11 bankruptcy, commonly known as business reorganization. Under this type of bankruptcy, a business may renegotiate the terms in its contracts and leases, request creditors to discharge debts, and restructure payment plans in order to reach profitability. Declaring corporate bankruptcy will give [...]
If your company is in the red and you are worried about creditors, fret not. There is a viable option to make the bankruptcy process easier to manage. One of the best available options is a pre-packaged bankruptcy. Pre-packaged bankruptcy is an alternative for companies considering bankruptcy. Throughout this procedure, creditor support is prepared for the company's bankruptcy plan prior [...]
The word “bankruptcy” understandably may strike fear into many hearts. Large, well-known companies like Macy’s, Sears, David’s Bridal, Nine West, and Mattress Firm have all filed Chapter 11 bankruptcy. However, it is not just big corporations who can and do file for Chapter 11 bankruptcies; individuals and small businesses may file as well. Filing for Chapter 11 bankruptcy does not [...]
With Chapter 11 bankruptcy, there is one objective in mind: to reorganize debts and assets. Unlike Chapter 7 where assets are liquidated to pay off creditors, Chapter 11 is arguably more forgiving. With Chapter 11, you don’t have to liquidate all of your assets to pay off your debts. You can work with your creditors to restructure payments towards your [...]
What is Chapter 11 Bankruptcy? Chapter 11 bankruptcy is most thought of as the commercial bankruptcy option for businesses, sole proprietors and partnerships. And it involves a reorganization of a debtor's business affairs, debts, and assets. While the debts are being restructured, they liquidate assets and restructure payment plans with creditors. Chapter 11 is also available to individuals. However, not [...]
Doing what you’ve been doing is going to get what you’ve been getting. —Seth Godin Remember that classic definition of insanity—doing the same thing over and over while expecting different results? Filing for individual Chapter 11 bankruptcy represents only one step of your journey to financial wellbeing. Your goal should not simply be to reset financially, but rather to recover—and [...]
Like all forms of bankruptcy, filing an Individual Chapter 11 Bankruptcy isn’t the end of your financial dream; it’s actually a method of resetting. While your financial difficulties may put a strain on your business, you still owe it to yourself to move forward. Here are some best practices to begin doing just that. Keep Business and Personal Finances Separate [...]
The only way you will ever permanently take control of your financial life is to dig deep and fix the root problem. —Suze Orman Before we move forward, let's put something into perspective. Bankruptcy is basically like a bandage for your debt problems: It can help stem the bleeding and give you the time to heal. But it does little [...]
Chapter 11 Bankruptcy is a court provision that affords you a temporary stay against creditor collection activities, allowing you time to reorganize and negotiate for repayment of your debt without losing profitability. The following section-by-section summary outlines the different sections when filling out a Notice of Chapter 11 Bankruptcy (For Individuals and Joint Debtors)—also known as Official Form 309E, also [...]
You’ve decided to handle your debt through Chapter 11. You’ve met with a credit counselor, filed your petition, submitted your monthly operating reports and have had your Section 341 meeting. Now what else do you need to do? The New Jersey Bankruptcy Court’s website provides an excellent breakdown of the basics of the Chapter 11 process. However, this second part [...]
