Archive for the ‘Bankruptcy’ Category

Chapter 11 bankruptcy is Reorganization

Chapter 11 bankruptcy is also known as reorganization. As the name suggests, this bankruptcy chapter involves the reorganization of the business. Businesses that are facing financial troubles but can operate viably if their debts are reduced or the repayments postponed can avail of protection under Chapter 11 of the Federal Bankruptcy Code.

Only businesses can file for protection under Chapter 11 of the Federal Bankruptcy Code. The business can be sole proprietorship, partnership, an LLC or a corporation. Chapter 11 bankruptcy also allows for the liquidation of the assets of the business to pay off the creditors. An experienced bankruptcy attorney can review the circumstances of the business and determine if it can file for protection under Chapter 11 of the Federal Bankruptcy Code. read more