Portland Chapter 11 Bankruptcy Attorneys

Portland Chapter 11 Bankruptcy Attorneys

What is Chapter 11 Bankruptcy?

Is your business struggling with a financial obligation? Are you having a hard time covering your payroll or store rent? For business owners facing financial distress and the threat of losing the company they’ve worked hard to build, filing bankruptcy in Oregon can help you get out of troubling waters.

Under a Chapter 11 bankruptcy, businesses can restructure their debts thereby enabling the company to stay afloat. It is designed to help debtors create a financial plan that the creditors and the Court will agree on to help the company remain open. The agreement will involve modifying interest rates, adjusting due dates of payments, or even discharging debts entirely! As long as all creditors agree on the terms, the new contract will be enforced and the filer will receive a debt discharge.

In contrast, if your business is already closing, a liquidation bankruptcy might be a better alternative. Some debtors opt for bankruptcy under Chapter 13 or 7 to cut on the time, cost and risk of going through Chapter 11 proceedings. Our Portland bankruptcy attorneys here at Michael D. O’Brien and Associates can help you decide which bankruptcy option is right for you.

Bankruptcy for Small Business Owners

Contrary to popular belief, Chapter 11 is not only for large corporations or businesses. In fact, it has often been used by small business owners to keep their stores open. If you have a lot of creditors pursuing you, you should know that filing a Chapter 11 bankruptcy can stop the collection process. You can begin the process by speaking with an experienced Portland Chapter 11 bankruptcy attorney near you, then preparing all needed documents. As soon as your bankruptcy petition is filed, an automatic stay will be issued by the Court. An automatic stay can help you:

• Stop creditor collections
• Stop an eviction or prevent foreclosure
• Avoid having to go through a collections trial
• Prevent seizure of your properties and assets

Unlike a Chapter 7 bankruptcy or Chapter 13 bankruptcy, your assets and properties are not placed under the management of a bankruptcy Trustee. This means you get to continue running your business as usual during your Chapter 11 bankruptcy.

How much does bankruptcy cost?

FIND OUT BANKRUPTCY FILING COSTS

How to File for Chapter 11 Bankruptcy in Oregon

1. File your Chapter 11 petition in bankrupcty Court. Your Chapter 11 case starts with you filing a petition in your bankruptcy Court. Your bankruptcy Court is the one where your business is located at, although you also have the option of filing where your business is domiciled or incorporated. If your business has been organized elsewhere, talk to a Chapter 11 bankruptcy attorney in Portland Oregon to know where you should be filing your bankruptcy, and whether Chapter 11 is right for you. In most cases, Chapter 11 bankruptcies are voluntary and debtors are the ones who take the initiative and do the filing.
2. Issuance of the Automatic Stay. After filing, your Chapter 11 bankruptcy Court will issue an automatic stay which will stop creditors’ collection activities. Your business can expect not to receive any more phone calls to pay back debts, nor get served lawsuits from the lenders. While this Court order is in effect, you continue normal business operations. You also start planning how to reorganize your debts and repay your loans while the business continues with its normal operations. At this stage, bankruptcy counseling may be sought.
3. Create your Chapter 11 reorganization plan. Remember, your creditors get to vote on whether or not your proposed plan will be accepted. If the creditor and debtor agrees, the plan will be enforced. However, when the creditor objects, the Court will need to look into several factors to arrive at a decision:
   • Plan Feasibility – is the plan likely to succeed? Does the filer have the ability to generate enough revenue to cover operational expenses and creditor payment?
   • Entered in Good Faith – was the plan written in good faith and with no hidden agenda?
   • Fair and equitable – will secured creditors be paid an amount equal to the collateral’s value?
   • Best Interests – will the creditors receive the same propsed amount as they would have if the filer opted with a Chapter 7 liquidation instead?
4. Reorganization Confirmation. For your Chapter 11 reorganization plan to be enforced, a Meeting of Creditors will be called before a judge. Each creditor will then provide a vote to be either in favor or not of your proposed plan. At this stage, your creditors may present claims or objections, and the Court will help both parties arrived at a final plan through a process called confirmation. After this, the Oregon bankruptcy Court shall supervise all business operations through your monthly progress reports, to ensure you are complying with the terms of agreement proposed in your contract.

Speak with Our Portland Chapter 11 Bankruptcy Lawyers

Michael D. O’Brien & Associates Bankruptcy Law Firm has 2 out of the only 3 nationally-certified consumer bankruptcy attorneys in the state of Oregon. By working with our Oregon attorneys, you can rest assured your bankruptcy case will be handled by the best Chapter 11 bankruptcy attorneys in the area. Save your business and keep the company you have worked hard to build! Please contact Michael D. O’Brien & Associates, P.C. to schedule your initial case evaluation.

We provide counsel and representation for small businesses in Portland, Bend, Clackamas, Tigard, Beaverton, Hillsboro, Lake Oswego, Sherwood, West Linn, Oregon City, Gladstone, Milwaukie, and Gresham. If you are going through a rough patch as a small business owner, our Chapter 11 bankruptcy attorneys at can help explain your options. We also provide counsel on matters concerning wage garnishment, auto repossessions, home foreclosures, lien stripping, and other alternatives to filing bankruptcy.