Filing for Chapter 11 Bankruptcy in Roxbury, CT
What is Chapter 11 Bankruptcy?
Cases filed under Chapter 11 Bankruptcy are mainly known as “reorganization” bankruptcy. This means that instead of completely liquidating your business, you have the opportunity to reorganize or rearrange the way your business runs. For businesses with heavy debt, Chapter 11 helps debtors create a plan for profitability post-bankruptcy. This can include cutting back costs while seeking new resources for revenue.
All along the way, you’ll be keeping creditors close, but not close enough to completely drain your business. The plan you create, will need to be approved by a court close to Roxbury. Once it has been approved, you’ll be able to redevelop your operations that helps you pay back a fraction of the debt you owe.
How Does Chapter 11 Work?
Chapter 11 Bankruptcy cases begin by filing a petition with a bankruptcy court close to the Roxbury area. Voluntary petitions can be filed out by a debtor, while involuntary cases must be filled out by a creditor. Along with a petition, the debtor must file a disclosure statement including their financial affairs. This can include:
- History of the debtor
- A Collection of assets and liabilities
- Documentation of current income and expenditures
- A list of any executory contracts or unexpired leases
- A statement of all current financial affairs
To have a Chapter 11 case go smoothly in Roxbury, a debtor must also propose a plan to help reduce unnecessary costs, while also looking for alternative resources for income.
Confirming the Plans for Chapter 11
To successfully reorganize your Roxbury business, you must have your plan accepted by the court. There are multiple points you need to include in your plan, but for the most part it must be:
- Feasible: Will your plan go off without a hitch? Will any problems arise? You need t make sure that the terms of your plan can be achieved and that you can cover the expenses. This also includes recurring payments to creditors
- Best Interest of the Creditors: For the plan to be accepted, you must complete it with your creditors in mind. This means that creditors must receive a similar payment to that of a chapter 7 liquidation. For certain situations, creditors may be awarded a payment in full.
Once the bankruptcy court for the Roxbury area accepts your plan, you may be free to begin reorganizing your business or personal finances.