During the last few weeks, we have written plenty on how Chapter 11 bankruptcy can serve as a means for businesses to survive. However, the finer details of Chapter 11 cases are also very important. Although each case will be different, as each business will face different circumstances, our blogs can provide a general idea of what to expect.
The Chapter 11 petition will be the first step for many, but not all, businesses seeking to file for bankruptcy. Individuals filing for Chapter 11 bankruptcy will start with credit counseling. For everyone else, preparing the Chapter 11 petition involves listing all debts, expenses, sources of income, expenditures and assets, such as property, vehicles and leases. A statement of financial affairs must also be filed.
After filing the petition, a business owner becomes a “debtor-in-possession”, and maintains control of his or her company with supervision from the bankruptcy court.
Do I Need an Attorney to File a Chapter 11 Bankruptcy Petition?
Going through this process without an attorney is extremely risky, time consuming and not recommended. Some bankruptcy attorneys have been filing these forms with courts for decades. To have the best chance at obtaining a debt reorganization plan under Chapter 11 bankruptcy, it helps to have the aid of people who have spent decades of their lives working with bankruptcy laws.
Most importantly, filing for Chapter 11 bankruptcy involves a series of steps, and filing a petition is only the first of several. In addition to filing a petition, a business owner must meet with creditors and attend hearings. Over the next few weeks, our blogs will cover more information on Chapter 11 bankruptcy.
The Sader Law Firm – Kansas City Bankruptcy Attorneys