The experienced legal team at Tudhope Law has helped many Orlando businesses facing financial hardship file for Chapter 11 bankruptcy. Oftentimes a business may owe money to only a few creditors, but additional time is needed to repay the debt. In other instances, a business may not have sufficient funds to manage its outstanding debts even with more time to pay.
If your business is facing difficult financial decisions, whether from the standpoint of a debtor or a creditor, the Chapter 11 bankruptcy attorneys at Tudhope Law in Orlando can assist you in debt negotiation or in determining whether you should file a business bankruptcy.
Orlando business entities may file for bankruptcy under either Chapter 7 or Chapter 11 bankruptcy, depending on your future plans for the business. If you do not intend to keep the business open or if it has already closed its doors, Chapter 7 bankruptcy will likely be appropriate. Upon filing a Chapter 7 business bankruptcy, the business will cease all operations, the assets of the company will be liquidated by the Bankruptcy Trustee, and any sale proceeds will be distributed to the company’s creditors.
If you wish to continue running the business, however, a Chapter 11 bankruptcy will allow you to do so under the direct supervision of the Bankruptcy Court. A Chapter 11 business bankruptcy is similar to a Chapter 13 bankruptcy in that the Chapter 11 serves as a reorganization bankruptcy for your business. At the time of filing, the business does not have to cease operations and it may be able to successfully remain open.
An Orlando Chapter 11 bankruptcy attorney can offer many benefits to business owners, including the possibility of retaining assets and being protected against lawsuits during the course of the bankruptcy. The bankruptcy attorneys at Tudhope Law will assist you in preparing a reorganization plan to submit to your creditors. In the preparation of this plan, we will advise you on a number of things, such as canceling burdensome legal obligations like unfavorable leases or oppressive pension and retirement funds. You may also be able to negotiate for later due dates or smaller payback amounts on outstanding debts.
If the plan does not meet with the approval of your creditors, it may still be submitted to the Bankruptcy Court for approval. Once your business is again financially secure, you may file a petition to close the Chapter 11 case and pending court approval, you may then go back to running your business as you did prior to filing for bankruptcy. If the business continues to be insolvent, however, you can choose to convert your Chapter 11 to a Chapter 7 and shut down the company.
If you think business debt negotiation or Chapter 11 bankruptcy can help you, it is important that you contact an experienced Orlando bankruptcy attorney immediately to discuss your options. The attorneys at Tudhope Law are highly skilled and experienced in both business and bankruptcy law and will answer your questions and counsel you in the complexities of the bankruptcy process. Whether you are a debtor or a creditor, we can help.
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