Bankruptcy For Businesses
Chapter 11 bankruptcy is a form of reorganization bankruptcy. Filing Chapter 11 bankruptcy reorganizes your debt and includes a plan for achieving profitability after bankruptcy. Chapter 11 is typically used by corporations with heavy debt burdens.
A plan for future profitability may include:
– Brian M. Blum, Managing Attorney
- Renegotiation of contracts
- Discharge of some debt
- Partial repayment of debt
- Sale of some assets
- Identification of new sources of income or capital
Individuals Can File Chapter 11 Bankruptcy
Chapter 11 bankruptcy is most commonly used by corporations, but individuals can file Chapter 11 in certain circumstances. The bankruptcy professionals at The Turnaround Team in Scottsdale will study the specifics of your financial background, ask you about your needs and goals and let you know whether filing Chapter 11 bankruptcy makes sense in your situation.Get a Free Chapter 13 Bankruptcy Consultation
Brian M. Blum, our Managing Attorney, has a thorough understanding of bankruptcy law. In some cases, he has found that filing Chapter 11 bankruptcy is appropriate for high-income individuals who have significant assets. Filing Chapter 11 is a significant undertaking and is more expensive than filing Chapter 13 bankruptcy. However, some clients prefer to file Chapter 11 because they are constrained by the rigidness of Chapter 13. In some cases, high-income earners can pay less in Chapter 11 than in Chapter 13, despite the much higher attorney’s fees associated with the 11.
Is Chapter 11 Right For The Self-Employed?
Many self-employed people mistakenly assume they should file Chapter 11 bankruptcy. In our experience, self-employed people can save significant time and money by filing Chapter 13 bankruptcy.
If filing Chapter 11 bankruptcy is truly your best option, the consumer bankruptcy professionals at The Turnaround Team will refer you to our sister law firm, The Andante Law Group, which focuses on commercial bankruptcy.
No matter what your situation, you can rely on The Turnaround Team for effective legal advice and personal service. Why not let us help you turn it around? Contact us to arrange a free initial consultation. We're Arizona's bankruptcy lawyers.