Chapter 11 Bankruptcy Attorneys in Ocean Springs
Reorganization for Businesses, Individuals, Married Couples
During a Chapter 11, creditors must stop collection activity against you or your business. This includes garnishments, foreclosures, levies, and lawsuits. This Automatic Stay protects you while you propose a plan to reorganize the debts and assets of the business. Contracts and debts that are weighing you down can be avoided or altered and the debts and assets that are beneficial to your business or personal finances can be kept.
What is Chapter 11 Bankruptcy?
Chapter 11 is mainly used by businesses to help reorganize assets and debt to save their business from closure or liquidation. Individuals and married couples may file Chapter 11, but it is usually not cost effective unless there is a significant amount of debt and assets. It is an extremely powerful tool for managing debt because it allows the business owner or individual to act as the “Debtor-in-Possession”, managing financial decisions and proposing a plan of reorganization to restructure debt in ways that help the debtor.
Chapter 11: Subchapter V (Small Business Reorganization)
In 2020, Congress added a new type of bankruptcy designed for small businesses. It combines many of the useful elements of a Chapter 11 with some of the simpler elements of a Chapter 13. A trustee is appointed to assist with the management of the case, but the debtor still runs the show. Some benefits of Subchapter V include: there are no quarterly UST fees, the plan is simpler than a full Chapter 11, the debtor is the only party that can submit or modify a plan, there is no absolute priority rule, and there is no requirement to file a disclosure statement. There is a debt limit of $2,725,625.00 for Subchapter V, however, Congress temporarily increased the limit to $7,500,000.00 until March 27, 2021. To determine if this option is right for you or your business, we offer a free consultation with one of our attorneys to review your situation and examine your options.
Call Our Mississippi Chapter 11 Bankruptcy Lawyers
If you have a business or if you have a substantial amount of assets and debt, our attorneys can review your situation to see if a Chapter 11 is right for you or your business. A consultation is free.
When you need help navigating bankruptcy in Biloxi & Jackson County, our Chapter 11 attorneys at Sheehan & Ramsey can help navigate Mississippi bankruptcy laws. Call 228-231-0715!
Bankruptcy
How Does Chapter 11 Bankruptcy Work?
Chapter 11 bankruptcy is an effective solution for businesses and individuals seeking to reorganize their debts and financial affairs. Our skillful Chapter 11 lawyers know this process well and we are prepared to guide you through it step by step. Here's a an overview of how Chapter 11 works:
Initial Evaluation: Assessing Your Financial Options
During a free consultation, our attorneys will assess your financial situation and explore whether Chapter 11 is the best option for you.Preparing Your Chapter 11 Petition
If you decide to proceed with Chapter 11, our lawyers will assist you in preparing and filing the necessary legal documents. This officially initiates the Chapter 11 process.Automatic Stay: Halting Collections Immediately
Upon filing, an automatic stay takes effect, which stops any collection efforts against your debt, including lawsuits and foreclosures.Designing Your Reorganization Plan
You have 4 months to propose a reorganization plan for how you will repay creditors over time while continuing business operations, though in some cases, you may be able to extend it to 18 months. Unlike Chapter 13, there is no time limit when it comes to completing the repayment plan. Our Chapter 11 lawyers will work with you to craft a feasible plan that maximizes debt reduction and ensures long-term sustainability.Negotiating with Creditors for Plan Acceptance
When a plan is created, the creditors must vote to accept it. We will engage in negotiations with creditors to secure their acceptance of the plan. If it is rejected, then, the business or individual, may ask for a “cram down” which asks the bankruptcy court to essentiall force the creditors to accept your plan.Securing Court Approval for Your Plan
Once the reorganization plan is finalized, it must be approved by the bankruptcy court. Our lawyers will represent you during court hearings and advocate for the plan's approval.Implementing the Court-Approved Plan
After court approval, you will begin implementing the reorganization plan, making payments to creditors as outlined. Our team will provide ongoing support and guidance to ensure compliance and success.
Upon successfully completing the repayment plan, your debts will be restructured or discharged, and your business or financial affairs will be reorganized.
Contact Our Trusted Local Chapter 11 Attorneys Today
At Sheehan & Ramsey, we have extensive experience in handling Chapter 11 matters. As a local law firm with deep roots in the community, we are committed to providing personalized solutions at competitive costs. Contact us for a free consultation with our 5-star rated law firm and let our seasoned Chapter 11 attorneys help you chart a path toward financial stability and success.
Ready for a Fresh Start? Explore Chapter 11 with Sheehan & Ramsey
Complete our form or call (228) 231-0715 for a Free Consultation.```