Chapter 11 Bankruptcy
What Is Chapter 11 Bankruptcy?
If your small business is under water, Gross & Patterson, LLC can help. If you are an individual and owe less than $336,900 in unsecured debt and $1,010,650 in secured debt our attorneys can look at filing Chapter 13 bankruptcy. If you are an individual and owe more than that, you won’t qualify for Chapter 13 and we recommend filing for a Chapter 11 or “reorganization” bankruptcy.
Serious concerns call for learned advice. Whether you are a sole proprietor, partnership or corporation, turn to an accomplished attorney at Gross & Patterson, LLC for an initial consultation at (412) 553-0140.
We gather information to assess the types of debts you have, and recommend the best reorganization plan. Individual debt is may be reorganized under a Chapter 13 or wage earners plan.
Keep Your Small Business Going
Filing for Chapter 11 bankruptcy may be the best way to stay in business. We examine all the secured and unsecured debts you have, including:
- Money owed to the IRS
- Tax and mortgage payments
- Types of creditors and amounts owed
- Money owed to vendors
We review all the facts, including special circumstances affecting your small business. Then we recommend the best solutions.
Bankruptcy law is federal law. Under a Chapter 11 reorganization plan, you continue to run your business, and stay in control of assets. The Bankruptcy Court must approve all major financial decisions impacting your business. When Chapter 11 is filed, an automatic stay applies, protecting you from creditors hounding you for payments.
Chapter 11 bankruptcy is just one tool in our financial first aid kit. We may recommend liquidating your business, renegotiating a loan or entering into a forbearance agreement. That means that your lender agrees not to foreclose on your small business so long as you continue making regular payments.
Pennsylvania Success Stories
Here is an example of what a lawyer can do:
A small business was obligated to pay $6,000 a month in rent to their landlord, their only creditor. The debtor was able to reject the lease, and renegotiated another lease costing less per month. With the money saved, the debtor was able to reorganize and stay in business.