Maryville Chapter 11 Bankruptcy Lawyer
Helping Tennessee businesses strapped for cash keep operating
If you’re ready to close your business and you have outstanding debts, a Chapter 7 bankruptcy is probably your best option. If you want to continue running your business while you manage how your creditors are paid, a Chapter 11 bankruptcy petition can help save your business. Your business (corporations and other business structures) will need to propose a formal plan (a “reorganization”) with your creditors. At LaFevor & Slaughter, we advise businesses of the benefits, risks, and requirements of filing for Chapter 11 bankruptcy in Tennessee.
How can our Maryville family law attorneys help?
- Who is eligible to file Chapter 11 bankruptcy in Maryville?
- How does the Chapter 11 reorganization plan work in Maryville?
- Who runs the business during a Chapter 11 reorganization in Maryville?
- What are the advantages of filing Chapter 11 in Maryville?
- What are the concerns about filing Chapter 11 in Maryville?
- Do you have a Maryville Chapter 11 lawyer near me?
Who is eligible to file Chapter 11 bankruptcy in Maryville?
Chapter 11 is an option for large corporations, small businesses, partnerships, and sole proprietorships.
Our Maryville Chapter 11 bankruptcy lawyer will explain the specific eligibility criteria, such as the Small Business Reorganization Act of 2019, that determine your company’s eligibility. Businesses can negotiate directly with their creditors. Chapter 11 “provides for a private trustee who will work with the small business debtor and its creditors to facilitate the development of a consensual plan of reorganization.”
How does the Chapter 11 reorganization plan work in Maryville?
According to the US Courts, Chapter 11 petition debtors must file:
- Schedules of assets and liabilities
- A schedule of current income and expenditures
- A schedule of executory contracts and unexpired leases
- A statement of financial affairs.
Per the US Courts website, there are additional filing requirements If the debtor is an individual (or a married couple filing jointly):
Such debtors must file: a certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling; evidence of payment from employers, if any, received 60 days before filing; a statement of monthly net income and any anticipated increase in income or expenses after filing; and a record of any interest the debtor has in federal or state qualified education or tuition accounts. 11 U.S.C. § 521. A married couple may file a joint petition or individual petitions. 11 U.S.C. § 302(a).
Investopedia states the person or entity that files for Chapter 11 is given the first chance to propose a reorganization plan to pay creditors. A reorganization plan renegotiates loans and debts, and downsizes operations. You may need to sell some business assets. If the bankruptcy court approves the reorganization, you can continue operating the business provided the business meets the terms of the plan.
Who runs the business during a Chapter 11 reorganization in Maryville?
The good news is that you should be able to continue running your business as a “debtor in possession.” If there are issues of dishonesty, fraud, or gross incompetence, then the bankruptcy court will appoint a trustee to run the business and negotiate with your creditors.
During the reorganization process, the trustee and/or the bankruptcy court will need to approve many decisions, such as:
- When and how assets (other than inventory) can be sold?
- How any old and new contracts with unions and vendors will proceed?
- What rental agreements are required and at what terms?
- When and how attorneys can be hired?
When you file a Chapter 11, you cannot “arrange a loan that will commence after the bankruptcy is complete.”
What are the advantages of filing Chapter 11 in Maryville?
A Chapter 11 business helps in the following ways:
- The filer can normally stay in control of their business, which is often critical to keeping customers and continuing the sales of inventory and services.
- Creditors have an incentive to approve a Chapter 11 plan. With Chapter 11, they’re likely to receive a sizable portion of their debt. The alternative is Chapter 7, which means that all unsecured debts will be discharged and any secured property will be sold – usually at a lower value.
What are the concerns about filing Chapter 11 in Maryville?
Some of the downsides and risks of Chapter 11 bankruptcy are:
- The process is more expensive.
- There are complex requirements.
- You need to submit a plan that provides enough profit to pay your creditors.
- Your creditors need to approve the plan.
Our Maryville Chapter 11 bankruptcy lawyer works with financial professionals who will help you decide if a Chapter 11 is advisable or if you to need think about closing your business and/or selling the assets of the business.
Do you have a Maryville Chapter 11 lawyer near me?
LaFevor & Slaughter is located at 317 Ellis Ave. Suite 317, in Maryville. We have another office in Knoxville. We also consult with clients by phone and through video conferences. We’ll meet you at your business location when necessary. We’ll help you make the right financial choices for your business.
Get help from an experienced Maryville Chapter 11 bankruptcy lawyer today
It’s hard running any business. The hours are long and there are often stretches where the money doesn’t flow in. When you can’t pay your bills on time, LaFevor & Slaughter is ready to discuss your financial choices. Our Maryville bankruptcy attorney will discuss how Chapter 11 can help you keep operating your business so you can provide for your family and your employees. We’ll help you prepare a reorganization plan and negotiate with your creditors. Call us or complete our contact form to schedule a consultation.