How Do Businesses Benefit From Chapter 11 Bankruptcy?
At Adelsperger & Kleven, LLP, we have over 65 years of combined experience representing individuals and businesses in all types of bankruptcy cases, including complex Chapter 11 bankruptcies. This form of debt relief is intended to help companies with heavy debt burdens reorganize and renegotiate their financial position for post-bankruptcy profitability.
For those who qualify, filing Chapter 11 has certain advantages, including:
- More time to plan and reorganize
- The ability to renegotiate contracts and leases
- The discharge or partial discharge of certain debts
Businesses in financial distress often seek Chapter 11 because it incentives creditors to compromise and work to find an equitable solution, especially since the terms of a Chapter 7 action are much less beneficial to them.
Helping Family Farmers Find Debt Relief Through Chapter 12 Bankruptcy
Chapter 12 is applicable to family farmers and family fishermen. Seeking the protection of Chapter 12 can help family farmers and fishermen avoid liquidation and foreclosure by allowing them to establish a plan to repay some or all their debt.
Chapter 12 is classified as a “reorganization bankruptcy” and is similar to Chapter 13, but provides further benefits to those who qualify. Since this form of bankruptcy is specifically tailored to meet the economic realities of family farmers and fishermen, it eliminates many obstacles other debtors face when seeking reorganization under Chapter 11 or 13.
Bankruptcy is confusing and overwhelming, and not something you have to go through alone. As experienced bankruptcy attorneys, we will help you evaluate your situation, formulate a manageable plan and be there to guide you through the entire process.
Is Your Business Facing Chapter 11 or Chapter 12 Bankruptcy?
Whether your business is facing Chapter 11 or Chapter 12, it is essential to enlist the help of a knowledgeable, compassionate bankruptcy lawyer. Adelsperger & Kleven, LLP, proudly serves clients in Fort Wayne and throughout Indiana.