Chapter 11 Corporate Bankruptcy

Choosing the right lawyer is a major financial decision if you are facing corporate bankruptcy in Florida. Our firm has a team of attorneys and legal professionals with years of experience and many bankruptcy cases under their belts.  Bruner Wright P.A. has the expertise to provide legal advice for chapter 11 corporate bankruptcy.

Our team has extensive experience in handling all types of bankruptcy, both personal and corporate. No matter what your financial situation may be, we will help you stabilize it and make better decisions for your family, business, and future.

The bankruptcy court will assist the business in reorganizing its debts and obligations during a chapter 11 corporate bankruptcy proceeding. A Chapter 11 bankruptcy will not affect the business’s ability to continue operations. This is in contrast to a Chapter 7 corporate bankruptcy. Corporations, LLCs, partnerships, and corporations often file for Chapter 11 business bankruptcy instead of other types.

The company that is going through a Chapter 7 bankruptcy filing can continue to function. In most cases, the debtor (also known as the debtor-in-possession) runs the company. However, in extreme cases of fraud, gross incompetence, or dishonesty, the bankruptcy trustee takes over the management of the business during the chapter 11 corporate bankruptcy process.

The bankruptcy court cannot authorize the company to make any major decisions, such as the sale of assets, expansion or stoppage of business operations, or the beginning or end of a rental agreement. The bankruptcy court has the right to make decisions about contracts with vendors, unions, and attorneys. A debtor cannot arrange a loan for a business that begins after the bankruptcy case has ended.

A Chapter 11 personal bankruptcy gives the company filing bankruptcy the opportunity to propose and create a plan for reorganization. This plan may include restructuring your business debts, reducing your business operations to reduce your expenses, or liquidating all your business assets to repay your creditors. As long as your plan is fair and feasible, the bankruptcy court will accept it. The process can then proceed.

The Small Business Reorganization Act of 2020 was implemented on February 19, 2020. It added a subchapter V under Chapter 11 bankruptcy to simplify bankruptcy for small businesses. The United States Department of Justice defines small businesses as an entity with less than $2.7 million in debts. However, they must meet other criteria for business bankruptcy chapter 11.

The reorganization law imposes shorter deadlines in bankruptcy cases, allows for more flexibility when negotiating restructuring plans and agreements with creditors and collectors, and provides a private trustee who can work with creditors and debtors to create a consensual plan.

On March 27, 2020, the president signed the Coronavirus Aid, Relief, and Economic Security Act (also known as the CARES Act). The act raised the Chapter 11 subchapter VI debt limit to $7.5million. This act applies to all Chapter 11 bankruptcies filed within one year of the act’s enactment and any sunsets.

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Bruner Wright is the top-rated experienced bankruptcy lawyer in South Georgia and the Florida Panhandle. Our team has more than 40 years of experience helping people file Chapter 7 bankruptcy, Chapter 11 bankruptcy, Chapter 12 bankruptcy, and Chapter 13 bankruptcy. Our practice has been very successful in helping people discharge their debts. We offer a personal service that is comprehensive and thorough in all aspects of our industry. We are responsive to the needs of our clients.

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Contact us today to schedule a consultation with a bankruptcy attorney. Find out if bankruptcy is the best option. A member of our team will review your case to help you make the right choice. We are focused on consumer bankruptcy. We want you to achieve financial stability.