A Chapter 11 Bankruptcy, allows financial restructuring and reorganization as opposed to liquidation of a company’s assets. Also, individuals who are not eligible to reorganize under chapter 13 must file under Chapter 11.
Businesses often choose to file Chapter 11 bankruptcy because their 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 their 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.
Call the Hawaii bankruptcy lawyers at the Affinity Law Group in Honolulu to learn if bankruptcy is the best direction for you and your family. We can be reached at (808) 545-4600, or by completing our contact attorneys web form.
Affinity Law Group, LLLC is a full service debt resolution law firm and one of the areas of our practice of law is to provide debt relief by filing for bankruptcy relief under chapter 7, 13 and/or 11 of the Bankruptcy Code.