Tampa Chapter 11 Bankruptcy Attorney
Chapter 11 bankruptcy is also referred to as a ‘reorganization bankruptcy’ because debts are restructured into a payment plan. Your debt is not discharged in Chapter 11 but rather, you will create a plan that spans many years, making your debt more affordable to pay. Most often, large businesses such as corporations use Chapter 11. In some cases, individuals carrying high amounts of debt also choose this option. Of all the different types of bankruptcies, Chapter 11 is one of the most complicated to file. Our Tampa Chapter 11 bankruptcy attorney can help you through the process.
The Petition
All bankruptcy cases officially begin when the petition is filed with the court. In other types of bankruptcy cases, it is usually the borrower that files the petition. Although this is often the case in Chapter 11 bankruptcies, others can file the petition, as well. Creditors can come together and file an involuntary petition, essentially forcing a business to file.
Assuming the Role of Debtor-in-Possession
A unique aspect of Chapter 11 bankruptcies is that borrowers assume the role of debtor-in-possession. With this title, the borrower can still maintain control of their assets. This is one of the biggest benefits that comes with filing Chapter 11 because it allows business owners to continue running their company. Debtors-in-possession also have certain obligations, such as filing reports with the court and responding to creditor claims. A borrower holds the title of debtor-in-possession for the duration of the bankruptcy case.
The Bankruptcy Trustee
Bankruptcy trustees are assigned in all bankruptcy cases, and Chapter 11 is no different. However, the trustee does play a slightly different role in Chapter 11 cases. While the bankruptcy trustee will still oversee the activities of the debtor-in-possession, they do not take control of the borrower’s assets. This is not necessary in Chapter 11 due to the fact that the borrower still has control of their own assets.
Creating the Reorganization Plan
You must create a reorganization plan for the debt and file it with the court within 120 days from the date you filed the petition. Creditors have a chance to review the plan and if they do not find it suitable, they can create their own plan and file it with the court. If a judge finds the plan feasible and fair, they will approve it.
Discharged Debt
You may not need to repay all of your debt in a Chapter 11 bankruptcy. In some cases, it is possible to get some debt discharged. Once debt is discharged, collectors can no longer try to recover it. After a discharge, the reorganization plan takes effect and you must make all payments according to the plan.
Our Chapter 11 Bankruptcy Attorney in Tampa Can Guide You Through the Process
Chapter 11 is one of the most complicated types of bankruptcy to file. At Ronald Cutler, our Tampa bankruptcy attorney can advise during every step of the process so you can make the best informed decisions for you and your business. Call or text us now at 386-490-9949 or contact us online to schedule a free review of your case.
