Chapter 11 Bankruptcy:
Chapter 11 Bankruptcy is designed for Businesses that have a current and
future profitable business that is worth saving and needs to reduce and
restructure past debt obligations. Some of the benefits of Chapter 11 are
as follows:
Payout debt up to a 6 year period.
Reduce and eliminate most tax penalties on priority tax claims.
Work out deals with taxing authorities in Bankruptcy.
Reduce unsecured tax to as little 10% of the claim depending on the
asset structure of the corporation.
Reject leases that are burdensome on the business.
Stop all lawsuits and collection actions.
Ability to offer new lenders D-I-P protection to secure funding.
Sell assets free and clear of leans pursuant to Section 363.
Individuals can also utilize Chapter 11 in the following circumstances:
Secured debt over the Chapter 13 Debt Limit.
Unsecured debt over the Chapter 13 Debt Limit.
Unique circumstances that might warrant taking their case to a creditor
vote.
Chapter 11 is the most expensive Bankruptcy and thus should only be used
in these circumstances and the Debtors must be prepared to:
Attend status conferences.
File operating reports every month.
Pay secured debt claims currently after the bankruptcy filing.
Stay current with leases that the Debtor wishes to affirm.
Pay the administrative costs inherent in Chapter 11.
We are a debt relief agency.
We help people file for bankruptcy relief under the Bankruptcy Code.