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.
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, PLLC can help navigate Mississippi bankruptcy laws. Call 228-231-0715!
Bankruptcy
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.
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Schedule your free consultation today!