Chapter 11

A Chapter 11 bankruptcy, unlike chapter 7 and 13, is a mode of bankruptcy filing for corporations and partnerships in general. Chapter 11 bankruptcies allow for the reorganization of a business and the negotiation of a repayment plan for the businesses creditors over time.

One of the principle benefits of chapter 11 filings for corporations and partnerships, in most cases, is that the personal assets of shareholders are not at risk in the filing of bankruptcy. However, there are limitations for personal asset protections if you operate a sole-proprietorship.

A plan of reorganization will need to be filed with the court that meets specific legal criteria. Acceptance of the reorganization plan will enable the corporation to begin the repayment of its debts. The chapter 11 bankruptcy terminates in the discharge period wherein payments on a regular and scheduled basis are made to creditors.

To find out if you are a candidate for a chapter 11 bankruptcy filing FREE of charge, call the Law Office of Fransen and Molinaro today at (888) 7-LOANLAW (5626529).