Law Office of Paul Petrillo

Contact Us Today 603-635-4149

Contact Us Today

Due to precautions related to COVID-19, we have expanded our options for remote consultations. Please contact our office to discuss whether a full phone consultation or video conference is appropriate for your situation. We can still accommodate in person meetings as well, while being mindful of social distancing guidelines.

Due to precautions related to COVID-19, we have expanded our options for remote consultations. Please contact our office to discuss whether a full phone consultation or video conference is appropriate for your situation. We can still accommodate in person meetings as well, while being mindful of social distancing guidelines.

Due to precautions related to COVID-19, we have expanded our options for remote consultations. Please contact our office to discuss whether a full phone consultation or video conference is appropriate for your situation. We can still accommodate in person meetings as well, while being mindful of social distancing guidelines.

Guide to Chapter 11 bankruptcy for New Hampshire residents

| Sep 12, 2014 | Chapter 11 |

Chapter 11 bankruptcy is a federal bankruptcy plan designed generally for assisting businesses with reorganizing their corporate or partnership structure in order to pay creditors back over time. It is seen as a temporary measure to help the business stay in operation. These are generally called “reorganization” bankruptcies rather than “liquidation” bankruptcies.

As with most bankruptcies, Chapter 11 bankruptcy begins by filing with a bankruptcy court. The company itself may file this petition, or certain creditors may file it if the company’s finances meet certain criteria. Documents that need to accompany the petition include the company’s accounting statements of assets, liabilities, income and expenditures, schedules of executory contracts and leases, and a general statement of financial affairs. Additionally, Chapter 11 bankruptcy generally requires a written disclosure statement as well as a plan of reorganization.

The proceedings are usually overseen by a trustee who serves as the mediator between the debtor and creditors. Chapter 11 may be complicated in cases involving corporate ownership rather than a sole proprietorship. In addition to his or her business assets, a sole proprietor will have his or her personal assets at risk for reorganization during this process. However, a corporation that is owned by its shareholders will only have its business assets at risk during Chapter 11 bankruptcy.

Those interested in attempting to reorganize their debt while under federal protections may benefit from consulting with a lawyer. A bankruptcy lawyer may be able to help with filing all the necessary paperwork. In addition, a lawyer may be able to provide representation in meetings with the trustee and creditors.

Source: United States Courts, “Reorganization Under the Bankruptcy Code“, September 08, 2014

FindLaw Network