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Filing A Chapter 11 Bankruptcy: Basic Steps

Helping Make A Difference For Your Business Through Chapter 11 Bankruptcy Filing

May it be due to COVID or some reason mostly out of your control, your business may face difficult times that result in paying some bills late or not at all. Although several small business owners are content with just barely getting by each month, being in so much debt makes staying afloat almost improbable. Knowing how to file Chapter 11 bankruptcy in Rockville MD is a crucial step in getting the financial relief that you need.

Regardless of what industry you’re doing business in, there’s definitely very fierce competition. If your business is facing debt that appears impossible to recover from, you’ll need someone on your side capable of helping you start afresh – a task an attorney from Kurland Law Group is certainly up for. Our team is dedicated to solving your financial problems and guiding you through the complicated bankruptcy process. 

If you’re considering filing a Chapter 11 bankruptcy and are looking for legal advice, reach out to our law office to receive a free case evaluation.

Why Do I Need A Bankruptcy Attorney In Maryland?

A great way to know if the bankruptcy lawyer you’re working with is great at her job is an intimate knowledge of Maryland bankruptcy law. More particularly, someone who is a reliable source of information on the basic steps in filing a Chapter 11 bankruptcy in Rockville MD.

Each bankruptcy attorney at Kurland Law Group is committed to walking each client through the complex Chapter 11 bankruptcy procedure and attaining debt relief. Our attorneys work hard to make sure that:

  • Every solution given is effective and built for long-term success
  • Debt relief will come naturally for you by changing vital aspects of your financial life
  • No time is wasted before, during, and after necessary paperwork is filed
  • Non-bankruptcy concerns such as loan modifications, asset protection, preventing wage garnishment, and foreclosure can also be addressed
  • Your peace of mind is restored with every bit of progress made on your bankruptcy case

Are you still pondering on your next move? Call our law firm right away to schedule a free phone consultation with our bankruptcy attorney and get to know how to file Chapter 11 bankruptcy in Rockville MD.

What Is Chapter 11 Bankruptcy?

Chapter 11 bankruptcy is a tool that allows businesses to repay their debts while reorganizing and continuing to operate. This type of bankruptcy is typically used by huge businesses and corporations who want to negotiate with creditors in order to have their debts restructured to make them more manageable to repay over time. A Chapter 11 bankruptcy case can be expensive and complicated. However, it provides a great way for struggling companies to do business as usual without having any assets liquidated.

Although it’s more common for struggling businesses to file for Chapter 11 bankruptcy, individuals experiencing financial troubles may also use it to get rid of debts. You are eligible to petition for this type of bankruptcy if:

  • The amount you owe is determined to be too high for a Chapter 13 bankruptcy case
  • You do not have enough assets for liquidation but with an income too high for Chapter 7 bankruptcy eligibility

If your company has been struggling to keep up with monthly obligations such as bills, wages, and miscellaneous expenses, then it might be time to find out how to file Chapter 11 bankruptcy in Rockville MD.

What Are The Advantages Of Chapter 11 Bankruptcy? 

Below are some notable perks of a Chapter 11 bankruptcy petition:

  • It stops all collection activities and payment requests while also preventing you from getting evicted or having your properties seized. It also temporarily stops any taps, bank levies, and foreclosures. 
  • You remain in charge of your business and maintain full control of operations. There will be no bankruptcy trustee involved so you remain the owner of your business while under Chapter 11 protection. 
  • You create a payment plan that makes sense for both sides. An important part of Chapter 11 bankruptcy is figuring out how to get a discharge. This allows your business to continue running while you repay your creditors.

Our bankruptcy attorneys at Kurland Law Group are experienced in helping clients properly reorganize their debts by teaching them the basic steps in filing a Chapter 11 bankruptcy in Rockville MD

What Are The Basic Steps In Filing Chapter 11 Bankruptcy?

After learning the basics of bankruptcy and complying with all eligibility requirements, now comes the complex process of Chapter 11 bankruptcy filing. Here are the steps you need to follow:

Submitting Your Petition

First, you must know which bankruptcy forms you must fill out and what documents you need to secure. This typically includes a summary of your financial affairs and monthly operating reports to determine how much your company spends every month. You will then be granted an automatic stay once you complete this step, preventing any creditors from directly contacting you.

Attend the Creditors’ Meeting

In most cases, you will be required to attend the 341 creditors meeting where your creditors get to ask you questions while under oath. Prior to this meeting, the Chapter 11 trustee will meet with you to conduct an initial debtors interview to get a better idea about your petition.

File a Disclosure Statement

A disclosure statement is a document that explains to your creditors their participation in the bankruptcy process and how their rights may be affected by this. After filing, you then must mail a copy to each of your creditors along with your proposed reorganization plan. 

Create a Sustainable Plan for Reorganization 

The plan of reorganization should state how you propose to treat each of your creditors. Your creditors will be classified into three: priority debt creditors, secured debt creditors, and unsecured debt creditors. Note that one or more creditors may disagree with how they’ll be treated, so you may need to file a motion to get it approved.

Be at the Confirmation Hearing

During the confirmation hearing, the bankruptcy court will decide whether or not to approve your proposed reorganization plan. You will only get the approval after your creditors have voted to accept the proposal.

Paying Your Creditors

Once the bankruptcy judge has approved your reorganization plan, you should now start repaying your creditors based on how they were classified. And once you’ve successfully made all agreed-upon payments, only then you can request the bankruptcy court for a discharge.

Get Help On How To File Chapter 11 Bankruptcy In Rockville Md Now!

No matter what situation you’re in, it’s crucial to know the basic steps in filing a Chapter 11 bankruptcy in Rockville MD. Our team at Kurland Law Group is highly qualified to give the best legal services related to bankruptcy, loan modification, short sales, asset protection, and more.

Chapter 11 bankruptcy may take up to two years. Make sure you get excellent legal representation so that roadblocks are dealt with properly. So, if you need legal advice on how to file Chapter 11 bankruptcy and its alternatives, give our law office a call today for a free phone consultation!

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