The New York bankruptcy attorneys at Lydecker Diaz have been representing both creditors and debtors in bankruptcy courts at the state and federal level for years. Our bankruptcy attorneys in New York have years of experience and are fully committed to helping our clients navigate through Chapter 11 and Chapter 13 bankruptcy at our New York offices.
Chapter 11 Bankruptcy
Chapter 11 is a specific type of bankruptcy outlined in the United States Bankruptcy code that gives any business the ability to reorganize and restructure financial assets and debts. Any entity operating as a business, corporation, or partnership is entitled to file Chapter 11 bankruptcy as a means of getting a fresh start by settling debts.
Individuals are also able to file for Chapter 11 bankruptcy but it is generally a much more arduous process than filing for Chapter 7 and Chapter 13.
The Chapter 11 Bankruptcy Process
The Chapter 11 process usually begins with a business entity filing for a petition in the bankruptcy court where the business is located. While not typical, creditors also have the ability to coalesce and jumpstart the Chapter 11 process by filing a petition before the debtor does.
Unless bankruptcy courts have reasons to suspect any negligent, unethical, or fraudulent behavior by the debtor, the operation of the business remains in the debtor’s control (a court-appointed trustee will assume control otherwise). Although debtors can continue operating the business normally, major business decisions on finances and contractual agreements can only be made by the bankruptcy court.
Once the petition for Chapter 11 is filed at the court, the debtor has up to 4 months to propose a credible reorganization plan. The court then decides whether to confirm the plan or not based on its conceivability, nature, and fairness.
Chapter 13 As An Alternative
Chapter 13 makes a lot of sense as an alternative for eligible debtors because only a fraction of what is owed has to be repaid. The major selling point for Chapter 13 is that the debtor gets to keep all major assets.
However, there are certain eligibility requirements for Chapter 13 that require an individual to be: financially stable enough to repay the debt, current with his/her taxes, and have less than a specified amount of secure and unsecured debt.
Contact The Lydecker Diaz Bankruptcy Attorneys In New York
At Lydecker Diaz, our bankruptcy lawyers in New York are here to assist you with Chapter 11 and Chapter 13 bankruptcy cases as well as business reorganization plans. Contact us today for more information or to schedule a legal consultation.