A qualified attorney can answer questions like “how does chapter 11 work?” and help you

It is helpful to have a basic understanding of Jacksonville’s bankruptcy laws, especially if you are planning to file. A frequent quesion is “how does chapter 11 work?”. Learn more about Chapter 11 bankruptcy and how it affects individuals and businesses. It is not an easy decision, but it is common to declare bankruptcy. Businesses in financial distress can file for Chapter 11 bankruptcy.

If a company is in financial difficulties, it can file for Chapter 11 bankruptcy to liquidate its debts or reorganize them. Individuals with high earning potential, but large debts can also file Chapter 11 Jacksonville FL bankruptcy. Chapter 11 allows debtors to plan for the future, such as cutting down on expenses or finding new income sources. Creditors are kept at bay. This type of bankruptcy is advantageous if you are eligible, but it can also be time-consuming and more expensive than other types of bankruptcy. There are many things to take into consideration. It can be stressful for anyone who is in this situation. A good attorney is essential, as well as the facts. We are here to help.

Filing For Chapter 11 Jacksonville Bankruptcy

Both individuals and businesses can use Chapter 11. You can file Chapter 11 as an individual to help you restructure your debt and finances. While you are going through bankruptcy, the goal is to preserve your assets. You can reorganize your business debt but only for business debt.

Filing As An Individual

It is less common to file an individual Chapter 11 than a business. However, filing an individual Chapter 11 is less common than filing as a business. The purpose of the filing is to reorganize real property investments and any unsecured debts that are too high to file under Chapter 13 bankruptcy. A wealthy person who has made poor investments or spent too much would be an example. Because they have high earning potential, they could be eligible to Chapter 11.

Chapter 11 & Mortgages

Chapter 11 allows real estate investors to rewrite mortgages. This is often used to lower the principal and increase the property’s actual value. Chapter 11 allows you, for example, to reduce your mortgage to its actual value if you owe $150,000 but the property is worth $100,000. You can extend the terms of your loan repayments for up to 30 years and lower the interest.

Reorganizing Unsecured Debt

For reorganization and repayment of the debt, most people choose Chapter 13 bankruptcy. However, Congress does not allow this to be done above a certain amount. Chapter 11 is the best option if your debt is large. This allows you to pay off large amounts of debt by restructuring it. A court-approved Chapter 11 plan allows you to make monthly payments to your creditors. Once your debt is paid off, you are free from any future liabilities.

Small Businesses

Chapter 11 is usually associated with large corporations or businesses, but it may be applicable to small businesses. A small business is one that employs fewer than 500 people. Most Chapter 11 bankruptcies are filed in small businesses. These are often dismissed and converted into Chapter 7 bankruptcies. If the court determines that the business is not likely to be profitable, this happens. Although partnerships are restricted in the options they have for filing bankruptcy, they can file Chapter 11 if there is potential for continued success. Businesses have additional time to negotiate with their creditors under Chapter 11. This allows for 180 days, compared to the 15-day period allowed by Chapter 7. There is one drawback. This lengthy process can result in additional legal fees, which can be too costly for struggling businesses. If the Jacksonville bankruptcy process is successful, it can provide real relief and future profits for businesses that were drowning in debt.

Tax Debt

Businesses often use Chapter 11 to pay back tax arrears. You can reorganize your property, payroll, or income tax debt to allow you to continue running your business while they are paid back. Most tax debt can be paid in five years. Chapter 11 allows you to negotiate terms for your tax debt and create a mutually acceptable plan.

Secured Debt

A Chapter 11 bankruptcy allows a company to reorganize its secured debt. You will identify secured debts and collateral that could contribute to your future success. This means that you will pay the current market value of your property, rather than what you owe. This could be real estate, vehicles, or business equipment. Our main goal is to allow you to run your business and increase your profitability by reducing your debt.

Unsecured Debt

Businesses, especially those that are newer, often use unsecured loans and credit cards to pay their expenses. Too much debt can lead to financial problems. Chapter 11 allows a business to restructure its debt and pay it off in a lump sum or over several years with monthly payments. Most businesses reach an amicable settlement with their creditors regarding repayment. If an amicable settlement cannot be reached, the court will determine the terms. These terms are binding on you.

Lease Or Contract Debt

Chapter 11 bankruptcy in Jacksonville allows you to accept or reject leases. If you have long-term contracts with vendors, for example, you can refuse the contract and look for cheaper vendors. Your new contracts must prove that they will increase your profitability. The judge should approve your new contracts as long as it is clear. This applies to any property leased by your business. You can refuse to accept a lease if the cost of your lease has increased and become unfeasible. Jacksonville bankruptcy code stipulates that you must declare your intention to reject the increase within a specified time period or it will be denied by the court.

The Best Jacksonville Bankruptcy Attorneys

A reputable attorney with expertise in bankruptcy law is necessary if you are considering filing for Jacksonville bankruptcy. A qualified attorney can answer questions like “how does chapter 11 work?” and help you determine whether bankruptcy is right for you. If bankruptcy is right for you, you will need to consult a caring and knowledgeable attorney to help you navigate the process.

Contact Bruner Wright P.A.

Bruner Wright P.A. is a top-rated experienced Jacksonville Chapter 11 Lawyer servicing the North Florida and the South Georgia area. Our practice has been very successful in helping people discharge their debts and handle both bankruptcy and foreclosure. 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.

Our Service Areas

Contact us today to schedule a consultation to speak to a bankruptcy attorney about filing bankruptcy chapter 11 in Florida. A member of our team will review your case to help you make the right choice. We are focused on personal chapter 7 bankruptcy, chapter 13 bankruptcy foreclosure, and business bankruptcy chapter 11. We want you to achieve financial stability.