Bankruptcy Reorganization Plans
Bankruptcy Attorney in Portland, OR
If you have debt problems, declaring bankruptcy might be beneficial for you. It is essential to comprehend what bankruptcy is and what alternatives exist. As bankruptcy is not permanent, it may allow you to clear your debts and start over.
Your non-essential assets (property and possessions) and excess income are used to pay off your creditors when you declare bankruptcy (people you owe money to). At the conclusion of the bankruptcy, the majority of debts are discharged.
The High Court has the authority to declare you bankrupt by issuing a “bankruptcy order” in response to a “bankruptcy petition.” A petition can be submitted by:
- multiple creditors
- the creditor
- a person who supervises or is bound by an individual voluntary agreement.
Are you considering filing for bankruptcy in Oregon? Filing for bankruptcy can be an emotional and stressful experience, which is why it is essential to find a bankruptcy attorney who can comprehend your financial situation and guide you through the filing process.
At Michael D. O’Brien & Associates PC, our Portland bankruptcy attorneys have more than two decades of experience assisting Oregon families in obtaining a fresh start through Chapter 7, Chapter 11, and Chapter 13 bankruptcies, stopping wage garnishment, preventing home foreclosures or car repossessions, and assisting with matters pertaining to lien stripping and fair debt collection. Unlike other Oregon bankruptcy attorneys, we understand that bankruptcy is not for everyone, which is why we also offer alternatives to bankruptcy to help you resolve your financial issues.
Please contact us at 503-852-9047 or make an appointment for a free case evaluation if you have any questions. We are available at any time of day or night to discuss the various legal options available to you.
Why do I need a Bankruptcy Attorney in Portland, OR.?
In the United States, the field of bankruptcy law is highly specialized. Bankruptcy Code can assist both individuals and businesses with their financial difficulties. Consumer bankruptcy and commercial bankruptcy are the two primary areas of concentration for most bankruptcy attorneys. Lawyers can represent individuals or creditors in consumer bankruptcies, but in business bankruptcies, they can only represent corporations as creditors or debtors. However, the breadth of work performed by bankruptcy lawyers in either specialty is the same, as both specialize in navigating solutions for financial restructurings, plan confirmations, and value disputes. This means that the scope of work performed by bankruptcy lawyers is the same. One option to determine whether or not future employment in this profession is right for you is to work as a clerk or an intern at a company that has a bankruptcy practice.
Even though it is not needed, several states do grant certification in bankruptcy law to identify further lawyers who specialize in this area of the law.
For concerns regarding bankruptcy reorganization plans, this specific issue concerns a Chapter 11 bankruptcy.
What is a Chapter 11 Bankruptcy?
Chapter 11 bankruptcy is the most prevalent form of debt reorganization for businesses. In most cases, this sort of bankruptcy is more complicated than consumer bankruptcies. By reorganizing their debt commitments via payment arrangements, negotiations, and liquidation, businesses can receive bankruptcy protection from their creditors. Typically, the business will be its own Trustee in bankruptcy and will be referred to as a “Debtor in Possession” or “DIP.” Occasionally, a committee of creditors will ask the court to appoint a Chapter 11 Trustee instead of the DIP to manage the business during the reconstruction plan. The business will offer a plan to its creditors. At that point, the creditors can protest, negotiations can ensue, compromises can be reached, and the judge can approve the proposed plan for reorganizing the business.
What is a Bankruptcy Reorganization Plan?
Are you a business owner experiencing financial difficulties and declining profits? Chapter 11 bankruptcy may help you reorganize your debt, keep your doors open, and repay your creditors gradually.
In a Chapter 11 reorganization bankruptcy, debtors can preserve their assets while formulating a plan to repay their obligations and, in some situations, receive a discharge of certain qualifying debts. Consequently, debtors are often known as debtors-in-possession.
One of the distinguishing characteristics of Chapter 11 bankruptcy is the Plan of Reorganization, which outlines how a debtor will repay their outstanding debts over the duration of the plan. To file for Chapter 11 bankruptcy, debtors must present a plan for court approval.
A Chapter 11 reorganization plan outlines how a debtor intends to repay its existing debts.
In order to ensure that Chapter 11 bankruptcy delivers a more permanent solution to the debtor’s financial troubles, a reorganization plan will also suggest a restructure of operations for the majority of Chapter 11-filing businesses. This may involve terminating or selling less profitable subsidiaries, divisions, or business lines, laying off employees, or making only partial payments on qualified obligations.
If accepted by the court, the reorganization plan serves as a contract between the debtor and its creditors. If debtors fulfill their duties under the plan, they will have paid off their current debts or secured a discharge. If the debtor violates the provisions of the plan, the bankruptcy case could be dismissed or converted involuntarily to a liquidation bankruptcy.
A Chapter 11 debtor is also permitted under the Bankruptcy Code to submit a liquidation plan. This allows the debtor to retain ownership of assets so that the business can be liquidated on more favorable terms. It will enable creditors to play a more active part in the liquidation process than in a typical Chapter 7 bankruptcy.
Call our Bankruptcy Attorneys Now!
The decision to declare bankruptcy is not always a bad one for failing businesses looking to position themselves for future success. Contact Michael D. O’Brien & Associates PC immediately to speak with a Chapter 11 bankruptcy attorney. Our bankruptcy lawyers in Portland, Oregon, will see that your case is handled correctly from the beginning to end. We will be with you every step of the way through the process of filing for bankruptcy, helping you craft a reorganization plan that is realistic, equitable, and workable. For a free case evaluation of your case, please contact us today.