Business Bankruptcy
Chapter 11
Chapter 11 bankruptcies are often referred to as 'business reorganizations'. A reorganization attempts to save the business while providing 'breathing room' from creditor pressures. While the possibilities for a business in Chapter 11 Bankruptcy are numerous, most employ the notion of removing the less productive areas of the business to allow the stronger areas to be saved; in essence a 'trimming of the fat' principle. In most Chapter 11's in North Carolina, the Bankruptcy Court allows management to remain in that capacity, since they are in the best position to guide the business to a plan designed to restructure the secured debt and compromise unsecured debt. In other types of Chapter 11's, the failing business is afforded the opportunity to close the business in an orderly fashion in hopes of negotiating outing potentially devastating personal liabilities.
A no-asset Chapter 7 business bankruptcy is frowned upon in the Western District of North Carolina Charlotte division absent additional fees to pay the trustee to properly administer the case. In this situation, it may be advisable for any personal guaranties to simply file a personal bankruptcy or engage in some debt negotiation, and administratively dissolve the corporate entity.
A no-asset Chapter 7 business bankruptcy is frowned upon in the Western District of North Carolina Charlotte division absent additional fees to pay the trustee to properly administer the case. In this situation, it may be advisable for any personal guaranties to simply file a personal bankruptcy or engage in some debt negotiation, and administratively dissolve the corporate entity.
*11 U.S.C. 528(a)(4) NOTICE. We are a debt relief agency. We help people file for bankruptcy relief under the federal Bankruptcy Code.
