Due to COVID-19, all consultations will take place via video, phone, or email. Please don’t hesitate to call or submit a contact form to set up an appointment. Thank you and stay safe.

Chapter 11 Bankruptcy Attorneys

Successfully Restructuring Business Debt Through Reorganization Bankruptcy

Our legal team at Leiderman Shelomith Alexander + Somodevilla, PLLC has more than 80 years of combined legal experience handling bankruptcy matters. We have worked with, and continue to work with, bankruptcy trustees and creditors, giving us unique and valuable perspective on the entire bankruptcy process. The Chapter 11 process can be complex, but we have the experience and knowledge needed to successfully guide your business each step of the way.

When Should a Business Consider Chapter 11 Bankruptcy?

A business that needs to restructure its finances is offered various beneficial tools in a Chapter 11 filing. Below are a few indicators that a bankruptcy filing could benefit your business:

  • The company is receiving a large number of collection calls and/or collection letters from collection agencies
  • The business is being threatened with, or is a current defendant in, Fair Labor Standards Act lawsuits
  • The company would like to restructure its debts with secured creditors
  • The business would like to discharge a large amount of unsecured debt
  • The company’s long-term revenues will be higher than the liquidation value of its assets, allowing its creditors to get more money back if they allow the company to reorganize and work out a payment plan
  • A secured creditor is about to take back its collateral
  • A judgment creditor is about to execute on its judgment lien
  • The company has a garnishment against its bank account
  • The business owns real property that is underwater and would like to eliminate (“strip off”) or reduce (“strip down”) secured debts against the property
  • Lawsuits are being threatened or are pending against the business
  • The entity needs to acquire new financing with more advantageous terms
  • The business could profit from rejecting or canceling certain unfavorable contracts
  • The owners want to continue to manage the day-to-day operations of the entity while restructuring financially
  • The company has been the victim of internal mismanagement or fraud and is looking for a way to deal with those issues

How Chapter 11 Bankruptcy Works

The debtor-in-possession must submit a plan of reorganization for approval by the creditors and the court. The plan organizes the company’s debt into classes according to the type of debt. The plan sets forth how the debtor-in-possession intends to pay its various creditors over the term of the plan. The plan can provide that certain contracts are cancelled, which can result in a substantial financial benefit to the company. The debtor can also “avoid” certain payments made within the period (usually 90 days) prior to the bankruptcy filing, resulting in the money being returned to the company, for the benefit of all of its creditors.

A majority of the creditors and the bankruptcy court must approve the Chapter 11 plan. Once the plan is confirmed, the debtor-in-possession operates its business while making payments to fulfill its obligations according to the terms of the plan. The bankruptcy court continues to supervise the Chapter 11 debtor’s business to ensure compliance with the plan, for a limited period of time.

What Are the Duties of a Chapter 11 Debtor?

A Chapter 11 filing can be used to reorganize a large corporation, a small business or it could be utilized on an individual basis.

The entity filing a Chapter 11 has certain fiduciary obligations, including:

  • Accounting for property and assets
  • Examining and objecting to claims of creditors
  • Filing required reports, including monthly operating reports
  • Obtaining court approval to employ professionals such as attorneys, accountants, appraisers, auctioneers, or others, as needed, during the case
  • Filing tax returns

The office of the U.S. Trustee is responsible for monitoring the compliance of the debtor in possession. Our attorneys work closely with the U.S. Trustee’s Office and have established a good relationship and reputation that benefits our Chapter 11 clients.

Utilizing The Small Business Reorganization Act of 2019

Our firm has a thorough understanding of The Small Business Reorganization Act of 2019 and we can use our knowledge and experience to help you reorganize and preserve your business during the bankruptcy process. We understand that Chapter 11 bankruptcy can be a useful tool to help a struggling business get back on track, and we want to use Subchapter V of Chapter 11 bankruptcy for the benefit of your small business.

Schedule Your Free Initial Consultation with Experienced Corporate Chapter 11 Lawyers

At Leiderman Shelomith Alexander + Somodevilla, PLLC, we appreciate our relationship with you and protecting the going concern of your business. You are not just a case or a file number to us. Let us help your business obtain the debt relief it needs and provide a stable financial future.

If you are interested in learning more about corporate Chapter 11 bankruptcy, and if your business is located in Broward, Miami-Dade, Highlands, Indian River, Martin, Monroe, Okeechobee, Palm Beach, or St. Lucie Counties, contact us via our online contact page.
Specialized Experts The Small Business Reorganization Act Chapter 11

The often times difficult Chapter 11 bankruptcy that traditionally favored larger companies is now available for small businesses through The Small Business Reorganization Act. Allows us to help you build a comprehensive strategy to navigate the process with the help our recognized team.

Real Client Experiences

  • “A very professional law firm with knowledgeable practitioners.”

    - Laura L.

  • “At all times he was caring and compassionate to me and my family.”

    - Former Client

  • “Great service and follow up.”

    - Robert Z.

/

Are You Ready for a Brighter Future?

Contact us 
for a free 
consultation.
  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.