Assisting Businesses and Individuals with Chapter 11 Bankruptcy Filings and Procedures in Utah
If your business is in over its head in debt and is unable to make payments, often the most responsible decision is to file for Chapter 11 bankruptcy. Chapter 11 is a relatively rare type of bankruptcy case, however, with only a few thousand businesses and/or individuals filing each year. For this reason, the option of Chapter 11 can often be overlooked when it may be the most beneficial decision for a company.
At JLT Law in Salt Lake City, we have experience handling Chapter 11 cases and we can recognize when it may be the right option based on your specific circumstances.
If you are considering bankruptcy, please call us today so that we can evaluate your situation and advise you of your legal options.
Who Benefits from Chapter 11?
The most common petitioners under Chapter 11 are businesses that are not looking to liquidate and cease operations as required in Chapter 7. Instead, Chapter 11 allows a company to enter into a reorganization plan under the supervision of the Bankruptcy Court. This plan can address the following issues and more:
- Debt reduction
- Addressing tax obligations and eliminating levies
- Increasing flexibility with commercial landlords or mortgage companies to avoid eviction or foreclosure
- Cash flow issues
- Pending legal claims or judgments
- Impractical financing of equipment
- Pending administrative actions
While Chapter 11 is most commonly associated with corporate bankruptcy cases, there are some individuals and married couples who decide to file under Chapter 11, as well. Chapter 7 bankruptcy has strict income requirements that if exceeded, will disqualify you. In addition, Chapter 13 bankruptcy has limits on the amount of debt a filer may have to qualify. This amount is adjusted each year in April, though for reference, the 2016-2107 limits are as follows:
- Unsecured debt = $394,725
- Secured debt = $1,184,200
If you exceed either of those amounts, Chapter 11 may be your only option for personal bankruptcy.
Guiding You Through the Chapter 11 Process
To initiate a Chapter 11 case, you must file an extensive amount of paperwork along with your bankruptcy petition with the court. All of the information provided must be accurate and complete in order to avoid unnecessary delays or the dismissal of your case. Once your case is accepted, you must file a disclosure statement and plan of reorganization with the court, which details how you will pay your creditors during the course of your bankruptcy case. The court must accept your disclosure statement and repayment plan in order for your case to proceed.
Having a skilled Chapter 11 bankruptcy attorney preparing your paperwork and reorganization plan is critical to having your case accepted by the court. An attorney can argue in favor of your plan and negotiate for a reasonable plan for repayment of your debts. Our lawyers will also guide you through to the end of your case to ensure you meet all requirements for a successful discharge of your debts.
Call for a Free Consultation with a Utah Chapter 11 Bankruptcy Lawyer Today
At the office of JLT Law, our Salt Lake City Chapter 11 bankruptcy lawyers will oversee every aspect of your case so that you emerge from bankruptcy in the best financial position possible. We can identify when Chapter 11 is right for you or your company and understand how to navigate this complicated process.
If you would like to learn more about your bankruptcy options, please call JLT Law for a free consultation at 801-596-9400 today.