Chapter 11 Bankruptcy
Bankruptcy is unfortunately a confusing legal process. For many individuals, its technicalities give rise to questions regarding the steps that they should take to ensure that they are protecting their assets and setting up a successful financial future. At Martin Law Firm, our Fort Myers and Cape Coral Chapter 11 bankruptcy lawyers are committed to protecting the rights of ordinary people and small businesses. We never advance the interests of large corporations. Our senior attorneys are a husband and wife team who are committed to the local community and who understand firsthand what it is like running a business and dealing with financial matters. If you are considering a Chapter 11 bankruptcy filing, we are here to help you.Understanding the Chapter 11 Process
There are a few different types of bankruptcy proceedings available to Florida residents. Chapter 11 bankruptcy proceedings, which can also be described as reorganization proceedings, are generally used to reorganize a business, as opposed to a Chapter 7 proceeding, which is used to resolve and potentially discharge an individual debtor’s financial obligations. In a Chapter 11 proceeding, the business is offered a chance to restructure its existing financial obligations and to receive a discount or refinancing on its unsecured debt so that the business can become profitable enough to repay its financial obligations. In most cases, a debtor that chooses a Chapter 11 proceeding is one that is earning an income but that is facing financial distress as a result of decisions that involve taking on debts that exceed the business’ ability to earn enough profit to pay back those obligations. There are ways to protect your assets in the proceeding, which typically involve using certain bankruptcy exemptions strategically to cover your home, vehicles, and any other critical assets.
The first step in filing a Chapter 11 bankruptcy is to fill out a petition and file it with a bankruptcy court. This petition will collect a broad variety of information regarding your financial situation, income, employment, and assets. A Chapter 11 bankruptcy attorney in Cape Coral or Fort Myers can help you collect the necessary information. The petition is usually filed in the area where the debtor resides. Although most debtors file a petition voluntarily, creditors do have some ability to file what is known as an involuntary petition if they meet certain requirements. In general, you should be prepared to disclose your assets and liabilities, your current income and expenses, your contracts and any unexpired leases, and a statement describing your general financial affairs. You must also provide a certificate showing that you completed credit counseling and copies of any debt repayment plans that you developed during the counseling.
Once you have filed a Chapter 11 proceeding, you must next obtain approval from the court to continue operating your business. This includes paying employee salaries and wages, paying vendors, and paying general bills associated with the business. These motions can be filed very soon after the initial petition, which is another reason why retaining a seasoned Fort Myers or Cape Coral Chapter 11 bankruptcy attorney to help you determine your legal rights during and after bankruptcy is so important. Many debtors have questions about how much money they may be required to pay, how much their loans will continue to cost them, and whether they will be in a better financial position after filing for Chapter 11 bankruptcy. Although there are no guarantees, using a bankruptcy calculator can assist you with determining what your financial situation may be during and after the proceeding. Also, since a Chapter 11 proceeding involves a reorganization, the debtor will typically be required to provide ongoing reports and disclosures to the court until the matter is closed.Speak with a Compassionate Chapter 11 Bankruptcy Lawyer in Cape Coral or Fort Myers
The attorneys at the Martin Law Firm are dedicated to serving residents in many areas of South Florida, including people in Fort Myers, Naples, Cape Coral, Tampa, and Miami. We treat each client with the respect and personal attention that they deserve, ensuring that their case is handled in a diligent and timely fashion. We know how stressful financial issues can be and how daunting it can be to pursue a bankruptcy proceeding. We offer a free consultation to help you learn more about the process and how our firm can assist you with securing a brighter financial future. Call us now at 1-844-465-4357 or contact us online.