Business Chapter 11

Chapter 11 bankruptcy in Arizona is a reorganization bankruptcy, where businesses or individuals propose a plan to repay creditors. It is the right bankruptcy chapter for sole proprietorships that have too much debt to qualify for Chapter 13 bankruptcy and who want to keep their business open and running. Corporations and limited liability companies must file Chapter 11 if they want to continue to run their business. The business assets remain in the debtor’s control, and they gain time to follow a repayment plan to achieve a fresh start. Business Chapter 11 bankruptcy can provide the needed time and protection for an Arizona business to restructure and reduce outstanding debts.

Business Chapter 11 bankruptcy allows for some assets to be protected while other are renegotiated. As one example, Chapter 11 bankruptcy could help protect investment property while restructuring mortgage debt.

With Chapter 11 bankruptcy, the creditors must vote in favor of the debt repayment plan. This is different – and more complicated in many ways – than in Chapter 13, where the creditors simply must not object. To successfully file a Chapter 11 plan of reorganization, you must have an experienced bankruptcy attorney that understands the unique challenges of Chapter 11 and knows how to build a plan with input from the creditors. Radix Law, in Phoenix and Scottsdale, Arizona, has decades of experience in all chapters of Arizona bankruptcy.

The business Chapter 11 bankruptcy filing in Arizona is significantly different – both complex and complicated – than either Chapter 13 or Chapter 7. Because of the complexity, it is especially important to consult knowledgeable bankruptcy attorneys before attempting to file for Chapter 11. But with an experienced bankruptcy lawyer on their side, businesses with excessive debt or sole proprietor businesses might find that Chapter 11 bankruptcy is the best solution for their circumstances.