Chapter 11 Bankruptcy – Business Bankruptcy Attorneys
If your business has been hit by the recent downturn in the economy, you are not alone. If you are struggling with the burden of unmanageable business debt, you can obtain a fresh start through a Chapter 11 bankruptcy.
The bankruptcy attorneys at our firm handle consumer bankruptcy and business bankruptcy to help clients that are struggling with debt problems. Attorney Michael P. Mallaney handles a significant share of the business bankruptcy cases at our firm. Michael has more than 30 years of legal experience and has a strong knowledge of the U.S. Bankruptcy Code as a former law clerk for Richard F. Stageman, a bankruptcy judge for the Southern District of Iowa.
Reorganization Through Chapter 11 Bankruptcy
In a Chapter 11 bankruptcy, a debtor typically proposes a reorganization plan to keep his or her business alive and pay creditors gradually over time. In this sense, a Chapter 11 bankruptcy is closer in form to a Chapter 13 bankruptcy than a Chapter 7 bankruptcy (which simply discharges most forms of consumer debt).
While an individual may file for Chapter 11 bankruptcy, it is typically used by business owners who are seeking relief from creditors for business-related debts. A Chapter 11 bankruptcy creates an automatic stay, which prohibits most creditors from further collection activity for a period of time while the debtor has a chance to seek bankruptcy relief. The automatic stay may be able to help your business stay a pending lawsuit or other adverse creditor remedy.
The process of Chapter 11 bankruptcy can be complex and time-consuming. Any decision to file for Chapter 11 bankruptcy should not be taken lightly and should only be considered after consulting with an experienced bankruptcy lawyer.
To speak with one of our business bankruptcy attorneys, call 515-223-4567, or contact us by e-mail.