Chapter 11 bankruptcy is often referred to as business reorganization because it provides businesses with the opportunity to restructure its debt and modify existing contracts. When filing for Chapter 11 bankruptcy in Florida, a company negotiates with its creditors and stakeholders to develop a Chapter 11 plan. The Chapter 11 plan allows businesses to alter existing contracts and loan arrangements to reduce the amount owed and extend the repayment period. Reorganization provides a company under financial stress with the opportunity for a fresh start. However, filing for Chapter 11 bankruptcy can be a very complex process that requires skilled legal representation. If you are considering filing for Chapter 11 in Florida, you should contact us to speak with a Tampa bankruptcy lawyer before taking any action.
Chapter 11 is not just reserved for businesses. Individuals may also be eligible to file for Chapter 11 bankruptcy in Florida, however, in most cases Chapter 7 or Chapter 13 bankruptcy will be a better solution for individuals. Both Chapter 7 and Chapter 13 are less expensive and time consuming than Chapter 11 bankruptcy. Business are eligible to file for Chapter 7 bankruptcy, but are not permitted to file for Chapter 13. Therefore, if a company wants to restructure rather than liquidate its assets, it should file for Chapter 11 instead of Chapter 7, which is a liquidation bankruptcy.
Consult With a Bankruptcy Lawyer in the Tampa Bay Area Today
If you or your business are experiencing financial hardship you should contact a Tampa bankruptcy attorney at our firm to learn more about the solutions that may be available to you. At Florida Law Advisers, P.A., our professional legal team will work closely with you to develop a comprehensive legal strategy to help alleviate your financial stress. We are experienced and skilled in all bankruptcy matters and are dedicated to helping our clients regain their financial health. We strive to provide our clients with long-term solutions, not just temporary relief that does not solve the underlying debt problem. For more information on how we can help please contact us to schedule a free consultation with bankruptcy attorney at our firm.
Frequently Asked Questions
No, individuals may also be eligible to file Chapter 11 bankruptcy. However, other forms of bankruptcy, such as Chapter 7 or Chapter 13 may be better suited for individuals.
No, businesses may also file for Chapter 7 bankruptcy. However, businesses are not eligible to file for Chapter 13 bankruptcy protection.
In Chapter 11 bankruptcy, a company negotiates with its creditors and stakeholders to develop a Chapter 11 plan. The Chapter 11 plan allows businesses to alter existing contracts and loan arrangements to reduce the amount owed and extend the repayment period.
Chapter 11 provides businesses with the opportunity to restructure its debt and modify existing contracts. A business will not be required to close as a condition of Chapter 11 bankruptcy.