Miami Chapter 11 Bankruptcy Attorney
Like individuals, some businesses may find themselves in a situation in which the expenses of the company outweigh the income. In such cases, a Chapter 11 bankruptcy allows the business to reorganize its debts so that it can emerge from its financial situation. Chapter 11 bankruptcy is also available to private individuals who may not meet the requirements in order to file under Chapter 7 or Chapter 13.
Just like with any bankruptcy filing, the assistance of knowledgeable counsel can be invaluable in trying to navigate the complex bankruptcy laws. Julia Kefalinos has been representing businesses and individual debtors for 20 years and has the knowledge and skill necessary to help debtors in distress. Contact our Miami Chapter 11 bankruptcy attorney.
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Distinctions of Chapter 11 Bankruptcy
Normally, debt-ridden businesses seek Chapter 11 protection. However, if an individual debtor exceeds the income limitations of Chapter 13, he or she may file under Chapter 11. Similar to a Chapter 13 bankruptcy, in a Chapter 11 bankruptcy the debtor (whether a business or individual) files a plan with the bankruptcy court stating how the debtor intends to reorganize and pay its debts. A Chapter 11 plan usually pays creditors over a period of five years but the length of plan may be extended up to ten years, with court approval.
One major difference between Chapter 7 or Chapter 13 bankruptcy and Chapter 11 bankruptcy is that the latter requires the filing of “first day motions.” That is, when a business debtor files its petition seeking Chapter 11 protection, the debtor must also file a set of motions with the court. These motions seek permission of the court to continue normal business operations and allow the business to pay employee wages as well as paying suppliers or vendors.
Another difference debtors will notice between Chapter 11 and other forms of bankruptcy is that Chapter 11 bankruptcy involves much greater costs and fees. This is because Chapter 11 has a greater amount of reports and procedures built into the process than other forms of bankruptcy. Depending on the size of the business, preparing, filing, and following through with a Chapter 11 plan can involve a substantial amount of work for both the debtor’s attorney as well as the U.S. Trustee and bankruptcy court.
One final difference relates to the management of the Chapter 11 plan. Whereas a debtor in a Chapter 13 bankruptcy pays the U.S. Trustee every month and the U.S. Trustee distributes the funds to the creditor, the owner of the business is typically responsible for paying creditors directly in accordance with the Chapter 11 plan once that plan is approved by the bankruptcy court. Contact our experienced Miami Chapter 11 Bankruptcy attorney today.
Capable Miami Chapter 11 Bankruptcy Attorney
As you can see from just this brief overview, Chapter 11 bankruptcy is complicated and is best handled by an attorney experienced and knowledgeable in the various requirements debtors must complete in order to have their Chapter 11 plan approved. Julia Kefalinos’ years of experience have provided her with skill in representing both individual and business debtors who need relief from overwhelming debt. She will explain the bankruptcy process to you, prepare the appropriate petitions, plans, and motions for you, and help you get started on the path to rebuilding your personal or business finances. Contact Miami Chapter 11 bankruptcy attorney, Julia Kefalinos today at (305) 845-2713.