While bankruptcy offers the opportunity to renew the financial health of yourself or your business, there are also numerous complications that can arise throughout the process. If you are considering filing for bankruptcy, you likely have a number of questions about the process. Reach out to an experienced Hayward chapter 11 bankruptcy attorney today for help in deciding which type of bankruptcy is right for you. The following is some important basic information about Chapter 11 bankruptcy, a popular form of bankruptcy for business owners.
What is Chapter 11 Bankruptcy?
After an business owner files for Chapter 11 bankruptcy, he or she has 120 days in which to submit a plan of reorganization to a court of law. These bankruptcy plans include details about how he or she intends to restructure the business debt and additional information including adjustment to interest rates, debt relief, and repayment extensions. This plan must then be approved by the majority of a person’s creditors and confirmed by the bankruptcy court.
When Reorganization Plans are Rejected
Unfortunately, not all creditors accept all reorganization plans. Some of the most common reasons why creditors object to reorganization plans include the following:
If a person is unable to come to an agreement with creditors about a reorganization plan, a rejected plan can still be approved by a bankruptcy court provided the plan is determined to be fair, equitable, and not discriminatory.
Confirmation of Chapter 11 Reorganization Plans
After a reorganization plan is confirmed, a business will be discharged from all debts that are filed in a bankruptcy plan. Once confirmation occurs, a person’s property is generally considered free of any encumbrances and liens. It is critical that both the person filing for bankruptcy as well as creditors follow any repayment conditions.
The Benefits of Chapter 11 Bankruptcy
The primary goal of a Chapter 11 bankruptcy filing is to reorganize a person’s debt. As a result, a well-developed reorganization plan is critical. There are also several other advantages that people realize as a result of the Chapter bankruptcy process:
Speak with an Experienced Hayward Chapter 11 Bankruptcy Attorney
If you live in Hayward or the surrounding area and are interested in filing for Chapter 11 bankruptcy, selecting an attorney who understands the process can help make sure that matters resolve quickly and successfully. At the Law Offices of Melanie Travare, we are prepared to help you navigate the Chapter 11 process. Having us on your side ensures that you have the best opportunity possible to rebuild your credit score. Contact us today to schedule a free case evaluation.