Palm Beach Gardens, Vero Beach & Wellington Chapter 11 Bankruptcy Attorney
Despite putting in a lot of hard work and effort, sometimes businesses fall into financial distress. For organizations that are unable to bounce back and pay off their debts to creditors, Chapter 11 bankruptcy serves to provide some level of financial relief. At our office, the experienced Palm Beach Gardens, Vero Beach & Wellington Chapter 11 bankruptcy attorneys of Markarian & Hayes understand the complexities of a Chapter 11 filing and are here to help your business through the bankruptcy process.
West Palm Beach Chapter 11 Bankruptcy
Chapter 11 bankruptcy refers to the chapter within the United States Bankruptcy Code that is dedicated to the reorganization of business entity through bankruptcy proceedings. Typically, a corporation, partnership, or limited liability company files for Chapter 11 bankruptcy, but individual debtors with too much debt or assets can file under this chapter, as well.
A Chapter 11 bankruptcy can either be filed voluntarily by the individual business entity or involuntarily by a group of creditors against the business. It must be filed in the state where the debtor has a domicile or residence. If an individual is filing for Chapter 11, there are additional requirements like required credit counseling and additional petitions to the court.
Before a reorganization plan is submitted to the bankruptcy court, the company continues to operate in the normal course of business. A trustee is appointed only if there is sufficient cause to take away operations; however, the bankruptcy court approves all major decisions regarding the business. This includes buying or selling any major assets, making or breaking leases, applying for a mortgage, increasing or decreasing business operations, entering into business or union contracts, and the payment of any fees to attorneys and other professionals.
Chapter 11 Reorganization Plan
An experienced West Palm Beach bankruptcy attorney is crucial to the creation of a Chapter 11 reorganization plan. The debtor typically has up to 120 days after filing for bankruptcy to file a reorganization plan with the bankruptcy court, but it may be extended by the court. Creditors may submit their own reorganization plan only if the debtor does not submit their plan within the allotted time.
The purpose of the reorganization plan is to restructure the financial affairs of the organization. It includes a plan for how to repay creditors as well as how to continue to pay off debts in the future. Most Chapter 11 plans include some level of downsizing and decreasing the overall liabilities of the business. Some organizations opt for a “liquidation plan” that completely shuts down the business and sells the assets to pay off the debts.
A reorganization plan can be modified and resubmitted to the court at any time prior to the plan being confirmed by the bankruptcy court. In order to be confirmed by the bankruptcy court, a reorganization plan must be feasible, created in good faith, in compliance with the Bankruptcy Code, in the best interests of the creditors, and fair and equitable.
Saving The Troubled Business
Aside from our people, at Markarian & Hayes, we consider our greatest strength to be our ability to quickly and effectively understand how your business works, the elements that have made it successful in the past, and, when it is floundering, the steps necessary to bring it back to solid footing .
We have successfully restructured and reorganized every conceivable business, from multimillion dollar regional airlines, to small “mom-and-pop” bakeries; from medical practices to restaurants; from construction companies to software developers.
If you are experiencing any form of financial distress in your business, we encourage you to consult with us. At the initial consultation, we will take the time to understand you and your business–the nature of your finances and the manner in which your business operates and keeps its books. We generally suggest you bring a copy of recent tax returns and financial statements. You might also bring copies of any legal proceedings that are concerning you, and documents establishing your obligations to lenders or creditors. Typically, within less than two hours, we will have a good working knowledge of your business and its problems, and are on our way to devising solutions.
We will then assign you certain “homework”—asking that you provide us additional information that is formatted into a template we will have custom designed for your business. We take that information and, using proprietary software, are able to prepare a graphic portrayal of your business “before” and “after”—projecting for you the “look” of your business when it has been restored to financial health. These steps can usually be undertaken for minimal expense.
Next, we will outline for you the steps necessary to take you through the reorganization process. In many cases, the process itself can be accomplished in a few short months. At Markarian & Hayes, we do not pursue cases with little prognosis for success. We will be straightforward with you and always advise you of the potential issues that you are likely to confront in any case. We are not interested in “surprise”…our goal is to minimize your stress and ours. Having said that, the legal process often involves the unexpected, and we at Markarian & Hayes have the experience you help you navigate the unfriendliest of waters.
Call our Palm Beach Chapter 11 Bankruptcy Attorneys Today
Chapter 11 bankruptcy proceedings are complex cases that can last for many years and affect every part of your organization. If you have questions about your business filing for Chapter 11 bankruptcy or any other questions regarding bankruptcy law in Wellington, West Palm Beach, Palm Beach Gardens, or the Vero Beach area the experienced attorneys at Markarian & Hayes are here to help. Call the office or contact us today for a confidential consultation of your case.