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 [...]
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 [...]
In contrast to the liquidation approach, when you opt for a reorganization Chapter 11, you’re not selling off assets. You're just restructuring your debt in a way that’s more favorable to you. In many ways, a reorganization Chapter 11 “rhymes” with a Chapter 13. For instance, you get the ability to make payments to creditors. This tool is particularly useful for [...]
Let’s cut to the chase. The main difference between Chapter 11 liquidation and Chapter 7 is that you, as the debtor, remain “debtor in possession.” In other words, you have control over the sale process. You also control the distribution of assets through the bankruptcy court. In a Chapter 7 case, by contrast, you are immediately taken out of possession. [...]
St Michael's Medical Center filed a chapter 11 case in Newark, New Jersey on August 10, 2015. A sale of substantially all of St Michael's assets to the "highest and best" bidder, is scheduled for November 5, 2015. Currently, the best bid on the table is a $49m bid from California based Prime Healthcare. But those involved in NJ healthcare [...]
