Chapter 11 Bankruptcy
Rappaport Osborne & Rappaport is well versed in individual and corporate chapter 11 cases. Individuals who cannot qualify for a chapter 7 or chapter 13 can file for relief under chapter 11.
Essentially, the individual retains all of their property and commits a stream of payments to the creditors over a period of time. A business may also seek chapter 11 protection.
The filing allows the business to reorganize while obtaining the much needed protection from creditors. The business must pay all post-petition debts during the bankruptcy but it is relieved from what can be an overwhelming obligation of pre-petition debt.
Generally, the business is given the opportunity to reorganize its financial status, sometimes by downsizing, rejecting leases, returning unnecessary equipment and taking other action that is not a viable solution outside of bankruptcy.
Eventually, the business will propose a plan to its creditors providing for a series of payments over time or in some cases, lump sum payments. Chapter 11 can be an ideal solution for small and larger businesses.