Chapter 11 Bankruptcy in New York
In today's troubling economy, more and more businesses are filing for protection under Chapter 11 bankruptcy. Under Chapter 11 bankruptcy, businesses or companies can remain in business while they pay off their debts to creditors. Chapter 11 is a highly favorable option for many businesses, corporations, and companies—especially those that are still viable and profitable—since it gives them the opportunity to get a handle on their finances without having to close down the business.
Chapter 11 bankruptcy is basically a restructuring process. After filing for Chapter 11 bankruptcy, a business is permitted to continue operations while it restructures its debt, gets out from certain leases and contracts, and cancels other financial obligations. During the restructuring process, the business is under the supervision of the bankruptcy court and its appointees, who monitor the business to ensure it stays on track.
Benefits of Chapter 11
After a filing for Chapter 11 bankruptcy, a business will be relieved of its debts and other dischargeable financial burdens, so it can make a fresh start without the operation of the business ever being affected.
Although Chapter 11 bankruptcy is mostly sought by businesses, there are some cases in which an individual may wish to file for Chapter 11 bankruptcy. An individual can generally file for Chapter 11 bankruptcy when he or she does not qualify for protection under Chapter 13. However, it's very uncommon for individuals to file for Chapter 11, since it's much more complex and expensive than Chapter 13.
Experienced Help for Your Situation
If your business or company is in financial trouble, filing for Chapter 11 bankruptcy may be a smart choice. Not only will filing for Chapter 11 bankruptcy protect you from creditor harassment, but you can also finally work towards eliminating your debts and getting back on track, so your business can continue to thrive. At Jacoby & Jacoby, we have extensive experience in bankruptcy law and litigation, and can provide you with the experienced advice and guidance you will need to navigate complex bankruptcy laws. We believe that every business deserves a second chance to succeed and profit. Helping you preserve your business is our number one priority!