Hawaii Business Bankruptcy Attorneys

Chapter 11 Bankruptcy Legal Help

The business bankruptcy lawyers of the Affinity Law Group, LLLC are familiar with the aspects of three existing bankruptcy options – Chapter 7, 11, and 13. With the knowledge of the processes coupled with a wide range of bankruptcy experience, our law firm understands what chapters of bankruptcy are right for individuals or businesses.

Business Bankruptcy

Chapter 11 is one chapter of the US Bankruptcy Code which, under law, allows financial restructuring and reorganization as opposed to liquidation of a company’s assets. Chapter 7 bankruptcy includes the liquidation process while Chapter 13 bankruptcy provides a reorganization process for a number of private individuals. Chapter 11 bankruptcy, however, is generally used by businesses and corporations.

Businesses often choose to file Chapter 11 bankruptcy because its long-term profits will be higher than the liquidation value of the company’s assets. With these situations, creditors can get more money back if they allow the business to reorganize their assets and develop a payment plan.

Chapter 11 business bankruptcy offers companies a number of methods to reorganize and restructure the financial aspects of its business as opposed to sole liquidation of the company’s assets. It allows bankrupt businesses to create a bankruptcy plan and obtain loans and financing by offering lenders first priority on the company’s earnings. With Chapter 11, businesses may come out of bankruptcy within a number of years or a few months, depending on the size of the bankruptcy.

A company that declares Chapter 11 must make known all of its assets and generate a list of all the debts that the business is seeking protection from. As a part of bankruptcy law, creditors have the right to question the debtors about these aspects. If bankruptcy court finds there has been any instance of fraud or deception within this process, a trustee may be appointed to take control away from the business’s owner.

If you’re a business – small or large – heading toward bankruptcy, contact a business bankruptcy law firm right away to find out your options and what’s best for your company. Call the Affinity Law Group in Hawaii toll free to learn your options at 808.545.4600, or complete our quick contact web form and we will respond to your inquiry.