Boca Raton Bankruptcy Attorney

Chapter 11 Bankruptcy

Chapter 11 bankruptcy, otherwise known as “reorganization bankruptcy,” can help you and your business climb out of debt. Due to its highly versatile nature, applicable to either an individual or to a corporation, with no limit on the amount of debt, this is the most common option chosen by businesses that would like to fix their financial standing.

Reorganization Bankruptcy

Chapter 11 bankruptcy earned the name “reorganization bankruptcy” due to the stipulations of its code. Under this chapter, the filing party undergoes a reorganization process in which assets held by the company or the individual may be sold in order to obtain money to repay creditors. Bear in mind, however, that this is not complete liquidation of the company or individual’s assets. The filing party continues to control its own business practices, but the court has the right to oversee and monitor its practices. This way, the company still maintains the opportunity to function and grow financially.

After one files for Chapter 11 bankruptcy, the court does have the right to have a hand in the dealings of the filing individual or company. It can require that the filing party must report all monetary dealings, such as the opening of new bank accounts, or all expenses and revenues. The filing party must also pay a quarterly fee to the court in return for its services.

Contact Us

If you or your company is considering filing for Chapter11 bankruptcy, or if you would like more information on how the process works, Boca Raton bankruptcy attorney Eric Klein, P.C. can help you. Please don’t hesitate to contact us at 561-353-2800 today.