In a Chapter 11 bankruptcy, a company is protected from creditors making debts or claims that arose before the bankruptcy petition was filed. Under Chapter 11, the business has the right to file a reorganization plan. Also, the business has up to 180 days to convince creditors to accept its plan. There are many benefits to filing Chapter 11 bankruptcy in Beverly, MA, with the help of the Law Offices of Christopher W. Parker LLC. Mr. Parker is an experienced lawyer who has satisfactorily represented many clients in litigation with state and federal courts. The following are some of the positive reasons to choose a Chapter 11 filing:
- In Chapter 11 you can keep possession of your assets and operate your business under the supervision of the court and for the benefit of your creditors.
- If a debtor, as a fiduciary for the creditors, is not managed effectively or is less than honest, a trustee may be appointed.
- With the appointment of a creditors’ committee, all creditors are represented by the committee, which provides oversight of the debtor’s operations. The debtor may also work with the committee to negotiate an acceptable plan of reorganization.
- The creditors vote to confirm a Chapter 11 plan.
- The debtor has a chance to ensure a plan is confirmed by creditors despite their opposition if the debtor meets certain statutory tests.
Considered the most flexible of all the bankruptcy chapters, Chapter 11 is also the hardest to generalize about. It may also be a bit more expensive to the debtor than other bankruptcy filings. There are also a number of complex rules and requirements in Chapter 11, which call for the presence of a knowledgeable bankruptcy attorney.