Vero Beach Chapter 11 Bankruptcy Attorney
How many times have you heard a news story about a company “declaring bankruptcy” yet remaining in business? This is possible because of Chapter 11 of the U.S. Bankruptcy Code. Unlike a Chapter 7 bankruptcy–which simply liquidates a business and its assets–Chapter 11 afford struggling Florida businesses a chance to reorganize their debts while keeping their doors open.
Chapter 11 bankruptcies are not simple affairs. They frequently take several months–even years–to complete successfully. That is why it is critical to work with an experienced Vero Beach Chapter 11 bankruptcy attorney. At Markarian & Hayes, our lawyers can steer your business through the reorganization process from start to finish. Whether you are a small “mom-and-pop” business or a multi-million-dollar corporation, we will provide you with an honest assessment of your situation and help you reach the best resolution possible.
Understanding the Chapter 11 Reorganization Plan
The key to a successful Chapter 11 bankruptcy is the reorganization plan. By law, once a business files for Chapter 11 protection, it normally has 120 days–about four months–to file a reorganization plan with the bankruptcy court. In some cases this exclusivity period may be reduced or extended. But once the exclusivity period ends, other parties–notably your creditors–can file their own competing reorganization plan. The creditors may even attempt to dismiss the debtor’s Chapter 11 petition and convert the case to a Chapter 7 liquidation.
It is therefore essential that the business develops the strongest reorganization plan possible. What this actually entails will obviously vary depending on the particular business and its financial situation. But in most cases, the business will need to downsize its operations to something more manageable while ensuring creditors get repaid over a period of time.
Ultimately, the creditors can challenge a Chapter 11 reorganization plan that does not fully pay them back. And the bankruptcy court will only approve a plan that is feasible, proposed in good faith, and serves the best interests of the creditors. In other words, if a business proposes a plan that deliberately shortchanges the creditors–or leaves them with less than they would get under a Chapter 7 liquidation–a judge is likely to reject it.
Call Us Today to Schedule a Confidential Chapter 11 Consultation
Not every Florida business can be saved by Chapter 11. But your business’ best chance for a successful reorganization is by working with the Vero Beach Chapter 11 bankruptcy attorneys at Markarian & Hayes. We have the ability and experience to learn about your business and its struggles. If Chapter 11 is not right for your situation, we will tell you so. Our goal is not to string you along with false hope. Rather, it is to put your business on the best footing possible going forward. We recognize the inherent complexity of Chapter 11 cases, and we will not subject you to the process unless there is a significant prospect for a successful reorganization.
Call us today at 772-794-3379 to schedule a confidential consultation with a member of our Vero Beach office.