Owning a business is never without challenges, but when financial hardship hits, it can feel like there’s no way forward. If you’re facing mounting debt, lawsuits, or creditor pressure, Chapter 11 bankruptcy could be the solution that allows you to restructure your finances and continue operating.

At Sheehan & Ramsey, our Mississippi bankruptcy attorneys help businesses throughout the Gulf Coast and Ocean Springs area use Chapter 11 as a lifeline — preserving assets, protecting jobs, and keeping the doors open while regaining financial control.

⚖️ What Is Chapter 11 Bankruptcy?

Chapter 11 is a powerful tool designed primarily for business reorganization. It allows a company (or an individual with substantial assets and debt) to reorganize its finances under court supervision — all while continuing to run daily operations.

When you file for Chapter 11:

• An automatic stay immediately stops all collection activity, including foreclosures, repossessions, garnishments, and lawsuits.
• You or your business become the “Debtor-in-Possession,” maintaining control of assets and management decisions.
• You have the opportunity to propose a reorganization plan that restructures your debts, renegotiates contracts, and provides a roadmap toward long-term stability.

🧾 How Chapter 11 Keeps Mississippi Businesses Operating

The purpose of Chapter 11 isn’t to shut a business down—it’s to give it the breathing room to rebuild. Here’s how the process works to help companies stay open:

1. Stops Creditor Action Immediately
   Once filed, creditors must halt all collection attempts. This includes freezing pending lawsuits, stopping foreclosures, and preventing bank levies. The automatic stay allows business owners to focus on solutions rather than surviving daily financial threats.
2. Restructures Debt Into Manageable Payments
   Chapter 11 gives you time to reorganize your debt—reducing interest rates, extending payment terms, or even eliminating certain obligations. This often frees up much-needed cash flow.
3. Keeps Control of Business Operations
   Unlike other bankruptcy types, Chapter 11 lets you stay in charge of your business. As the Debtor-in-Possession, you continue making day-to-day decisions while working with your attorney to build a realistic financial plan.
4. Renegotiates Leases and Contracts
   Unprofitable leases or supplier contracts can be modified or rejected in Chapter 11. This allows your business to shed burdensome agreements and focus on those that support growth.
5. Prepares for Long-Term Success
   Once your reorganization plan is approved by the court and creditors, you’ll make payments under new, sustainable terms — giving your business the structure it needs to succeed beyond bankruptcy.

💡 Considering Subchapter V: A Streamlined Option for Small Businesses

For smaller companies, the Subchapter V form of Chapter 11 offers a more efficient process with fewer administrative costs and faster resolutions. It allows only the business owner to file or modify a plan, eliminates certain fees, and avoids complex disclosure requirements.

This option is particularly helpful for family-owned or closely held Mississippi businesses that need relief but can’t afford a full corporate restructuring.

🤝 Why Work With Sheehan & Ramsey

Navigating Chapter 11 is complex — but with the right legal team, it can be an incredibly effective way to keep your business alive. The attorneys at Sheehan & Ramsey bring years of bankruptcy experience, in-depth knowledge of federal and Mississippi bankruptcy laws, and a deep connection to the local Gulf Coast business community.

Our firm helps business owners:

• Assess whether Chapter 11 or Subchapter V fits their goals
• Prepare and file detailed bankruptcy petitions
• Negotiate with creditors and landlords
• Represent clients through every court hearing and reorganization step

We take pride in helping Mississippi business owners protect what they’ve worked hard to build — and guiding them toward renewed financial health.

🌅 Rebuild Your Business and Your Future

Financial struggles don’t have to mean the end of your business. Chapter 11 bankruptcy offers a path to recovery, renewal, and stability — without giving up control.