Chapter 11 bankruptcy allows a business to restructure its debt and reorganize its operations by proposing a plan of reorganization for creditor and court approval. Under the confirmed plan, the business can reduce its debt by repaying a portion of its obligations and discharging others. The business can also terminate burdensome contracts and leases, sell unwanted assets, and rescale its operations in order to return to profitability. This may seem straightforward, but if the plan is rejected, the business could face the prospect of liquidation to repay creditors.
A lawyer who understands your business and the needs of creditors can develop a bankruptcy strategy, propose a reorganization plan and demonstrate to creditors that they have more to gain from accepting the proposed plan than from rejecting the plan and liquidating the business.
Chapter 11 bankruptcy is also available to individuals, particularly for an individual with a high income and a high debt load, who may not be eligible for Chapter 13 due to the debt limitations of Chapter 13 or who may be able to get a better result in Chapter 11 than in Chapter 13. Determining whether Chapter 11 makes sense for you requires an attorney with experience representing individuals in Chapter 11.
Successful bankruptcy practice in Chapter 11 requires not only specialized knowledge of the complexities of the Bankruptcy Code and rules, but also knowledge of a broad range of discrete substantive areas, including accounting, taxation, real estate, securities and finance.
Andrew Balbus’ prior experience as an investment banker and business turnaround leader provides clients with a unique perspective in negotiating and restructuring debts and reorganizing businesses.
Mr. Balbus has authored several scholarly articles on the application of the Absolute Priority Rule to individuals in Chapter 11 which have been published in the prestigious Norton Journal of Bankruptcy Law and Practice. In these articles, Mr. Balbus argues that under current law, individual debtors in Chapter 11 should be allowed to retain valuable business assets over the objection of unsecured creditors, subject to paying their creditors their projected disposable income over a five-year period. These articles have been cited and relied upon by bankruptcy court judges in reaching decisions around the country.
To Learn How Chapter 11 Bankruptcy Can Help You, Contact Us For A Free Initial Consultation
To discuss Chapter 11 bankruptcy in a free initial consultation, call 203-286-4121 or e-mail us.
Balbus Law Firm is a debt relief agency. We help people and businesses in New York and Connecticut file for bankruptcy relief under the Bankruptcy Code.