Idaho Falls Chapter 11 Bankruptcy Attorneys
Guiding Business Owners Through Chapter 11 Bankruptcy
Chapter 11 bankruptcy is a reorganization plan that allows a business to continue operating while it restructures its debts. Businesses that file Chapter 11 bankruptcy are often corporations, LLCs, or partnerships. Individuals are not allowed to file Chapter 11 bankruptcy, and must instead file Chapter 7 bankruptcy.
Many businesses that file Chapter 11 bankruptcy are successful businesses that have fallen on hard times. They are not necessarily failing businesses. However, those businesses may be able to restructure their debts and assets in a way that allows them to continue operating profitably.
To discuss your business's legal options with an Idaho Falls Chapter 11 bankruptcy attorney, contact Tolson & Wayment Freedom Law online or call (208) 271-4403.
Requirements for Filing Chapter 11 Bankruptcy
Before a business can file Chapter 11 bankruptcy, it must meet certain requirements. First, the business must have a certain amount of assets to be eligible to file Chapter 11 bankruptcy. Second, a business cannot file Chapter 11 bankruptcy if it has already filed Chapter 11 bankruptcy within the last six years.
Third, the business must be represented by a qualified bankruptcy trustee. The trustee will help you complete the bankruptcy forms and will make sure that you fulfill all of the legal requirements for filing Chapter 11 bankruptcy.
What Is the Purpose of Filing Chapter 11 Bankruptcy?
The purpose of Chapter 11 bankruptcy is to allow a business to continue operating while it restructures its debts. The business will develop a reorganization plan that will be approved by the bankruptcy court. The plan must allow the business to pay back all of its creditors in full, over time, while allowing the business to continue operating.
The reorganization plan may include any of the following:
- The payment of a certain percentage of the unsecured debts over time
- The conversion of certain debts into equity
- The sale of certain assets
- The rejection of certain contracts
Once the reorganization plan is agreed to by the creditors and the court, the business will be able to pay back its debts over time, while continuing to operate.
What Is the Difference Between Chapter 11 and Chapter 13 Bankruptcy?
Chapter 11 bankruptcy is often referred to as "reorganization" bankruptcy, while Chapter 13 bankruptcy is often referred to as "debt consolidation" bankruptcy. They both serve the same purpose, which is to allow a business or individual to restructure their debts and assets so that they can continue to operate or pay back their debts over time.
The main difference between Chapter 11 and Chapter 13 bankruptcy is the amount of debt that the individual or business has. If the individual or business has less than $11,725 in assets and less than $281,725 in debt, they can file Chapter 13 bankruptcy. If they have more than $281,725 in debt, they must file Chapter 11 bankruptcy.
Why Choose Tolson & Wayment Freedom Law?
At Tolson & Wayment Freedom Law, we have helped hundreds of business owners successfully navigate Chapter 11 bankruptcy. We have the knowledge and experience needed to help your business successfully reorganize your debts and assets.
Other reasons to choose us include:
- We have handled cases involving substantial sums of money
- We have an A+ rating with the Better Business Bureau
- We have experience helping businesses in a variety of industries
- We are committed to providing personalized legal services
Contact Our Idaho Falls Chapter 11 Lawyers
If your business is struggling with debt, you may be able to file Chapter 11 bankruptcy. To discuss your options with an Idaho Falls Chapter 11 bankruptcy attorney, contact Tolson & Wayment Freedom Law online or call (208) 271-4403.
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