Helping your business emerge from debt
If your Arizona company is accumulating debt at an unsustainable rate, then the Frutkin Law Firm can help you file for business bankruptcy in Phoenix. Our firm understands the amount of time, energy, and money that people invest in their businesses. The experience of heading a failing company can be devastating. On top of pressure from creditors, business owners may feel a sense of hopelessness and shame. Our law firm approaches your case sensitively and professionally with the ultimate goal of helping you emerge from debt.
Staying in business with Chapter 11 Bankruptcy
Chapter 11 bankruptcy is typically filed by businesses which have accumulated excessive debt. As an alternative to Chapter 7 bankruptcy, in which assets are liquidated, Chapter 11 gives petitioners time to propose a payment plan for money owed to creditors. With Chapter 11, your business can remain open while a bankruptcy court oversees the reorganization of debts and contractual obligations.
When you file for Chapter 11 bankruptcy in Phoenix, you become a debtor in possession, which means that you maintain ownership over bankruptcy assets while reorganizing your debt. You also maintain the right to use, sell, or lease property in your bankruptcy estate.
Filing for Chapter 11 Bankruptcy
Like in other forms of bankruptcy, filing for Chapter 11 requires that you meet fill out many forms. Filing for Chapter 11 is perhaps more complex than Chapter 7 or Chapter 13 because you must create a detailed debt reorganization plan based on a disclosure statement that lists all of your company’s assets. The court will then judge if the plan to repay creditors is likely to succeed. For help creating a plan for business bankruptcy in Phoenix, contact a skilled Chapter 11 bankruptcy attorney at the Frutkin Law Firm.
Establishing eligibility
If you are filing for Chapter 11, you must meet certain requirements:
- You must not have a dismissed bankruptcy petition in the previous 180 days
- You must have received credit counseling from a provider approved by the U.S. Trustee Program in the previous 180 days
- You must pay a $1,000 filing fee and $39 administrative fee
The Frutkin Law Firm can help you decide if Chapter 11 bankruptcy in Phoenix is the best option for your business. Some businesses might benefit more from a Chapter 7 bankruptcy. Contact one of our experienced bankruptcy lawyers to explore your options.
