CHAPTER 11 BANKRUPTCY

Chapter 11 Bankruptcy Frequently referred to as a "reorganization" bankruptcy. Chapter 11 is available to individuals, corporations and partnerships. Unlike Chaper 13 Bankruptcy, it has no limits on the amount of debt to which it can apply. It is the most common choice for large businesses seeking to restructure their debt. Typically, individuals file Chapter 7 or Chapter 13 rather than Chapter 11.

Hagen & Hagen is a Florida Bankruptcy Law Firm that specializes in helping our clients navigate the maze of bankruptcy laws and bankruptcy court when filing. Our team of experienced bankruptcy attorneys are on your side before and after you file to protect your interests if you choose to enter into a Chapter 11 proceeding.

Under Chapter 11 Bankruptcy reorganization, the debtor usually remains in possession of his assets, operating the business for the benefit of creditors under the supervision of the Bankruptcy Court. A trustee manager may be appointed to manage the company while under reorganization. A committee of creditors is typically appointed from among the 20 largest, unsecured creditors. This committee represents all of the creditors in providing oversight for the debtor's operations and a body with whom the debtor can negotiate an acceptable plan of reorganization.

A Chapter 11 plan is confirmed by the creditors, who are divided into classes based on their claims, and whose votes count depending upon the amount of their claim against the debtor. By meeting certain statutory test, the debtor can attempt to force a plan and get the plan confirmed despite creditor opposition.

Chapter 11 is probably the most flexible of all the chapters, and as such, it is the hardest predict the outcomet. Its flexibility makes it generally more expensive to the debtor. The rate of successful Chapter 11 reorganizations is statistically low. Individuals typically reorganize under Chapter 13, which allows the individual to keep possession of his assets, catch up on secured debt, and discharge unsecured debt at the end of the plan.

Bankruptcy filings can be complex and difficult. Hagen & Hagen, P.A. has the experience to guide you through all proceedings and protect your rights.. Please give us a call at (954) 987-0515 for a consultation today.