Newark Consumer Law Firm

Chapter 11 Bankruptcy Lawyer in Newark

Do you own a corporation or small business? Especially since the onset of the COVID-19 pandemic, maintaining profitability has been a tremendous challenge for businesses throughout the United States. Like countless other business owners, you may be asking yourself whether it’s time to cut your losses and liquidate your company.

Fortunately, you may have a better option at your disposal: Chapter 11 bankruptcy. Often considered a business version of Chapter 13, Chapter 11 allows businesses of all types and sizes to retain ownership and control over their assets and operations while they restructure their debt. Depending on your situation, it may result in a debt discharge at the end of the reorganization and repayment plan.

This type of bankruptcy is an extensive and complex process, however, which is why you will need support from our Chapter 11 bankruptcy attorney in Newark. Founded in 2009, Dublin Packard, Attorneys at Law provides top-tier counsel and representation for struggling businesses. Our founding attorney has 20+ years of experience, and he looks forward to putting this experience to work for the future of your company.

Learn more about Chapter 11 by calling (862) 305-4901 or contacting us online. We can begin with a complimentary consultation.

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How Does Chapter 11 Work?

Unlike Chapter 7, Chapter 11 requires the debtor to reorganize their debt, restructure their operations, repay a certain portion of debt, and possibly downsize their business. This is a complex process that may take anywhere from six months to several years. Despite these challenges, Chapter 11 provides businesses with the invaluable time they need to get their finances in order while under the protection of the automatic stay (i.e. a court order that halts all collection activities).

Generally, you will be considered the “debtor in possession” during your Chapter 11 case. This means you will retain ownership and control over your operations, although you will need to obtain court approval before making certain decisions (e.g. opening a new location, making a new investment, canceling or forming a contract, etc.).

Chapter 11 presents two major challenges that Chapter 7 and Chapter 13 filers generally don’t experience:

  1. Cost. Requirements like disclosure statements and creditors’ committees add substantial expenses to the total cost of filing bankruptcy.
  2. Creditor involvement. The bankruptcy court cannot confirm a reorganization and repayment plan until creditors vote to approve it. This is why Chapter 11 cases often take much longer—creditors have a much greater level of authority and may even propose a repayment plan themselves.

For these reasons, Chapter 11 has historically been a better option for corporations than for small businesses. However, Congress recently passed the Small Business Reorganization Act of 2019, which added a new section to Chapter 11, effective in February of 2020. This section, called Subchapter V, is exclusively for small businesses, and it contains fewer obstacles and costs. Learn more about Subchapter V and how it can help small businesses here.

Chapter 11 is also an option for individuals who do not qualify for either Chapter 7 or Chapter 13. To find out whether Chapter 11 is appropriate for your financial situation, let Dublin Packard, Attorneys at Law provide the insights and personalized guidance you need.

Schedule your courtesy evaluation by calling (862) 288-7945 or contacting us online today. We offer flexible scheduling, including same-day services and appointments outside of regular business hours.

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