Reorganization Lawyers
The economic downturn has forced many businesses large and small to file for Chapter 11 bankruptcy. Chapter 11, known also as Reorganization, is a complex process that requires experienced guidance and counsel.
Details of Chapter 11 Bankruptcy
In Chapter 11 bankruptcy, the filing business makes an attempt to come up with a new payment plan to reorganize its debt. This plan is presented to creditors in bankruptcy court. The creditors then cast ballots to vote on whether or not to accept it. If there is agreement, the plan becomes a new contractual agreement between the parties.
If they disagree, your bankruptcy lawyer can try to come up with a new plan, or the bankruptcy court can impose the plan on the creditors or the negotiations may simply end up failing. A bankruptcy attorney with the necessary experience can help you reach a Chapter 11 bankruptcy reorganization plan that creditors or judges will accept.
Bankruptcy Reorganization- What’s Involved?
The Chapter 11 reorganization most likely will involve an attempt to reduce the value of the business’s debts to match the value of its assets. Debts in excess of the value of the business assets are treated as unsecured, and a large amount of them are forgiven. Secured debts can also be renegotiated or litigated to achieve a lower interest rate and for a longer repayment duration.
To learn more about bankruptcy in the Austin, Georgetown, Leander, or Round Rock area, you can schedule an appointment for a free initial consultation with one of the members of our legal team. Just call 512-322-5367 or or
contact our offices online.