Bankruptcy: Chapter 11

Chapter 11 is commonly known as the “business bankruptcy,” though Chapter 11 can sometimes be the right course of action for an individual. In Chapter 11, the debtor continues to operate its affairs while formulating a “plan of reorganization” or in certain circumstances, a plan of liquidation. Chapter 11 can be a sophisticated and protracted process.

Like the other chapters of the Bankruptcy Code, the Chapter 11 debtor ultimately seeks to obtain a discharge of its debts, though practically speaking; few Chapter 11 debtors emerge from Bankruptcy with ownership and management intact. Most Chapter 11 cases culminate with formation of a new entity, many times bearing the name of the old bankrupt company, with new management or ownership structures.

Chapter 11 cases often move very quickly. Creditors are well advised to act retain counsel immediately to preserve their rights. Medina Law Firm LLC regularly represents parties in Chapter 11 proceedings and has the experience to ensure you get results from the Bankruptcy process.