Huntsville Chapter 11 Bankruptcy Lawyers

Chapter 11 bankruptcy is structured to "reorganize" business debts and allow you to continue to operate your business. Rather than having debts completely forgiven, however, in Chapter 11 bankruptcy, a company repays its creditors over an extended period of time.

Chapter 11 bankruptcy is significantly more complicated and time-consuming than a Chapter 7 bankruptcy. The debtor and creditor lawyers, the bankruptcy administrator's office, the unsecured creditors' committee, and the bankruptcy judge assigned to the case are all much more involved. The active period of a Chapter 11 case can take anywhere from several months to several years.

At Heard, Ary & Dauro, LLC, in Huntsville, Alabama, we have helped many businesses stabilize themselves financially by utilizing the Chapter 11 bankruptcy process.

Is reorganization under Chapter 11 right for you? Chapter 11 bankruptcy is primarily used to reorganize the debts of businesses, but it occasionally used by high-income or high net worth individuals. Our attorneys review the unique aspects of every case before recommending a resolution.

Who Can File Chapter 11?

Upon filing a Chapter 11 petition, a new legal entity known as the debtor in possession (DIP) is created. The DIP is automatically given protection from creditors, who cannot pursue collection in state court or exercise certain default remedies they otherwise would have.

There are limitations as to who can file Chapter 11. A debtor may not file Chapter 11 if:

  • The debtor had a previous bankruptcy petition dismissed within the past 180 days or he or she did not appear in court as ordered.
  • Within the past 180 days, a bankruptcy petition was dismissed because the debtor did not follow the court's orders.
  • A bankruptcy petition was voluntarily dismissed within the past 180 days after creditors tried to recover the debtor's property in which they had placed liens.
  • Within the past 180 days, an individual debtor did not complete the required credit counseling (unless this was due to an emergency).

Experienced Insights From Huntsville/Madison Business Bankruptcy Attorneys

While Chapter 11 bankruptcy is a good solution for some businesses, it is not the best fit for many others. Companies that wish to stay in business can also enter into voluntary work-out negotiations with its creditors.

Our Huntsville Chapter 11 bankruptcy attorneys get to know how your company operates in order to reach the best possible outcome. We will work with you to fix your immediate concerns and help decide what bankruptcy option works best — or if filing for bankruptcy is even necessary.

To schedule an appointment in which we can assess your situation and provide a recommendation on the next steps to take, call 256-715-5184 or use the contact form on this website.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.