{"id":36869,"date":"2022-03-11T03:18:23","date_gmt":"2022-03-11T11:18:23","guid":{"rendered":"https:\/\/pdxlegal.com\/?page_id=36869"},"modified":"2023-01-13T03:24:43","modified_gmt":"2023-01-13T11:24:43","slug":"chapter-11-bankruptcy-attorneys-for-small-business-owners","status":"publish","type":"page","link":"https:\/\/pdxlegal.com\/chapter-11-bankruptcy-attorneys-for-small-business-owners\/","title":{"rendered":"Chapter 11 Bankruptcy Attorneys For Small Business Owners"},"content":{"rendered":"
Chapter 11 is one of the types of bankruptcy enumerated in the United States bankruptcy code. Businesses often file Chapter 11 if they desire further time to reorganize their debts. This type of bankruptcy provides the debtor with a clean slate. The terms, however, are conditional on the debtor fulfilling its commitments under the plan of reorganization.<\/p>\n
Chapter 11 bankruptcy for small business owners is the most difficult type of bankruptcy. Additionally, it is typically the most expensive type of bankruptcy process. As a result of these considerations, a business should choose Chapter 11 reorganization only after conducting a thorough analysis and examination of all other viable alternatives.<\/p>\n
At Michael D. O\u2019Brien & Associates PC, 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<\/a> 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.<\/p>\n<\/div>\n<\/div>\n<\/div>\n If a Chapter 11 reorganization is chosen, the filing party retains complete decision-making authority and the business can resume normal operations initially. To present to the court, a reorganization proposal will be developed, which will frequently include some reduction in the size and scope of the firm. The party filing the petition has four months to devise a restructuring plan. This is referred to as the “exclusivity term,” and the court has the authority to prolong it if a compelling justification exists. If the plan is adopted, the debtor must adhere to all of the plan’s requirements and make all agreed-upon installments on time.<\/p>\n The court will assist a firm in restructuring its debts and responsibilities during a Chapter 11 procedure. In the majority of situations, the business continues to operate. Numerous significant corporations in the United States file for Chapter 11 bankruptcy and manage to stay afloat. Among these enterprises are automobile behemoth General Motors, airline United Airlines, retail giant K-mart, and tens of thousands of others of varying sizes. <\/p>\n While corporations, partnerships, and limited liability companies (LLCs) typically file Chapter 11, individuals with significant debt who do not qualify for Chapter 7 bankruptcy<\/a> or Chapter 13 may be eligible for Chapter 11. However, the procedure can be time-consuming.<\/p>\nHow Does Bankruptcy Under Chapter 11 Work?<\/b><\/h2>\n