Chapter 11 Bankruptcy
Chapter 11 Bankruptcy
Bankruptcy Law – Chapter 11 Bankruptcy
Arizona Chapter 11 Bankruptcy
Chapter 11 is not for the faint of heart, but if a business owner with financial problems feels he or she can save the business, Chapter 11 provides an orderly procedure for accomplishing this goal. Chapter 11 has several permutations to meet a variety of needs. It is available to the owner of a single piece of income-producing property under the Single Asset Real Estate (SARE) version of Chapter 11. Additionally, it is available to individuals whose debts exceed the debt limits imposed by Chapter 13.
Generally, Chapter 11 is available for large and mid-size corporations, as well as small business owners. The Bankruptcy Code and its accompanying Rules provide slight variations to meet the needs of small business owners and individuals who have been pushed into a Chapter 11. While an individual with a business who is taxed as a sole proprietor or limited liability company on a Schedule C can file under Chapter 13, if the debts exceed the debt limitations of Chapter 13, these individuals can file as a small business under Chapter 11.
More recently, Chapter 11 has been amended again to provide additional relief to the small business debtor. The Chapter 11 was designed with a large manufacturing company in mind. The previous alterations for small businesses mainly included the opting out of an impaired class of unsecured creditors assigned. These measures were found to be insufficient. The Small Business Reorganization Act of 2019, also known as Subchapter V, provided substantive relief to small businesses filing under this option of Chapter 11.
The intent of the content on our website regarding Chapter 11 is to provide a basic understanding of the concepts on which this chapter is based, and a familiarity with the basic procedure, so that a business owner will have a background when consulting with legal counsel. The information provided does not explain all the details of Chapter 11. Nor is it intended as legal advice. Every business is unique with its own set of legal problems. It is important to consult with legal counsel, who can apply Chapter 11 concepts to the set of issues your business faces. The focus of our firm is small business reorganization and assisting individuals who have been forced into a Chapter 11.
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During our initial consultation, we will help you review your financial situation, assess your options and choose the best course of action for for you and your family. To learn more, contact us via Email or by phone at 602-275-3238 to arrange a consultation.to schedule an appointment.
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