Chapter 11 Bankruptcy - Advantages [mortgage-assumption.blogspot.com]
Chapter 11 Bankruptcy is primarily utilized by businesses looking to reorganize. While Chapter 7 is available to businesses, many businesses find that liquidation is disadvantageous. In some regards, Chapter 11 is similar to Chapter 13 in that debt is restructured and a new repayment plan is created. This video shows Arizona bankruptcy attorney John Skiba discussing some aspects of chapter 11 bankruptcy. John is a bankruptcy attorney in Mesa Arizona currently working for JacksonWhiteLaw Firm. You can learn more about bankruptcy at www.jacksonwhitelaw.com
mortgage-assumption.blogspot.com Chapter 11 Bankruptcy
Bankruptcy is a debt relief option that a person opts for when he has no other way of paying off his debts. It is an ultimate option for a person who needs legal help to pay his creditors.
Bankruptcy offers several options to a person who can choose the one that suits his situation the best. One such option is the Chapter 11 code. It is the option that is ideal for business firms. It offers relief from debts without having to liquidate assets and ceasing operations. It is a pretty handy option for a business as it allows proceeding with the normal operations while paying off the debts with time. This option does not cause any halt in the business operations and this is what benefits a business the most.
Let us take a look at some of the major advantages of availing the Chapter 11 option under bankruptcy.
No halt in operation
This option lets a firm to continue its operations while its structure and debts are being reorganized. This is considered to be the most vital advantage of choosing this option. Unlike Chapter 7, under which an entity requires to liquidate all its assets and stop business operations right away, Chapter 11 is not that harsh. A company can go on operating normally. Also, by choosing this option, a company can keep paying salaries to its workers and perform functions like provision of pensions and health benefits.
Intact assets
This option allows a company to keep its assets intact and secured. Instead of liquidation of assets, a business is restructured. In case of publicly-held firms and large businesses, a part or whole ownership is shifted to creditors.
Personal proposal of a restructuring plan
Under this option, a company is allowed to present its own restructuring plan. This plan can incorporate debt cancellation. This option is pretty beneficial to a company as it can draw a plan on its own, that suits its requirements and that favors its employees and stockholders.
Payment of debts over time
Chapter 11 under bankruptcy allows a debtor to pay off his debts over a period of time. This helps in freeing resources that a company can utilize to rebuild. This can make the payments smaller and manageable. It also frees up more capital to put into the business.
If your business is going through a bad financial phase, you must consider opting for bankruptcy under the code of Chapter 11. Worcester County has several law firms that can provide expert legal help to individuals who are planning to opt for this option. More Chapter 11 Bankruptcy - Advantages Topics
