Chapter 11 Business Bankruptcy - Reorganization

Successfully Restructuring Business Debt Through Chapter 11 Bankruptcy

Guiding Florida entities step by step through the reorganization process

The legal team at Leiderman Shelomith Alexander + Somodevilla, PLLC has more than 60 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?

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 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 even an individual. 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.

Schedule your no-cost 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. 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 by calling 954-920-5355 or via our online contact page. Let us help your business obtain the debt relief it needs and provide a stable financial future.


Leiderman Shelomith Alexander + Somodevilla, PLLC

Fort Lauderdale

2699 Stirling Road, Suite C401
Fort Lauderdale, FL 33312

T. 954-920-5355 | F. 954-920-5371


2 South Biscayne Blvd, Suite 2300
Miami, FL 33131

T. 305-894-6163 | F. 305-503-9447

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