Chapter 11 Is A Powerful Debt Relief Tool

Chapter 11 bankruptcy is normally used for business reorganizations, but the process can be used by individuals who are not eligible for people who have business debt problems as well as consumer debt issues. Chapter 11 cases tend to be more complex and expensive than the other chapters, whether you are a business or an individual. You should speak with an experienced bankruptcy attorney to learn more about your debt relief options.

At Seder & Chandler, LLP, we have earned a reputation throughout Massachusetts for our work in complex bankruptcy cases. Our attorneys have a comprehensive understanding of the bankruptcy laws and they are well-known by trustees and the bankruptcy bar. Seder & Chandler, LLP, will use its knowledge and skills to obtain the optimal debt relief solution for you.

The Features Of Chapter 11 Bankruptcy

Basic features of a Chapter 11 case include the following:

  • You may be eligible for Chapter 11 if you have more than $360,475 in unsecured debt and more than $1,081,400 in secured debt.
  • You serve as your own trustee, unless the bankruptcy court appoints a trustee for you. That means you can recover certain payments you made to creditors, object to claims, propose a plan to your creditors for full or partial payment of their claims against you, and generally exercise most of the powers and duties that a trustee would have.
  • The United States Trustee (a division of the U.S. Department of Justice) monitors your case. You will be required to file monthly reports of your income and payments. The trustee will examine evidence of insurance and tax payments, and it will collect a quarterly fee from you based upon how much you spend.
  • You have a limited "exclusive" right to propose a plan to your creditors, using your property and your anticipated income. Creditors either have to vote to accept your plan, or they can be forced to accept the plan under specific Chapter 11 rules.

Chapter 11 is a complicated form of bankruptcy that you should not attempt without a qualified and experienced lawyer to represent and guide you. At Seder & Chandler, LLP, we have represented debtors in Chapter 11 over many years. We can help you decide whether Chapter 11 is the right — or only — option for addressing your debt problems.

Help For All Parties In A Commercial Bankruptcy

In a troubling economy, it is not uncommon for a business to face financial peril. Most businesses also must deal with customers and creditors who struggle with their own financial problems and limitations. The Bankruptcy Code enables both businesses and individuals to reorganize their financial affairs and negotiate their way to a "fresh start" when facing crushing debt or litigation with creditors. The Bankruptcy Code also gives creditors and other parties certain rights and protections when enforcing their claims, liens and other rights against a debtor's estate.

If you are a business or individual in financial trouble, we will sit down with you and carefully examine your financial situation and industry to help you determine if Chapter 11 or an out-of-court solution addresses your problems and prospects for future business in the most effective way. Our firm has the necessary skills and knowledge of the Bankruptcy Code and insolvency law to help you navigate the complex path of business bankruptcy, as well as to negotiate effectively with banks, employees, utility companies, vendors, creditors' committees, and the multiple other parties to achieve the best possible solution for your business.

If your customer, or a business that owes you money, files a Chapter 11 bankruptcy, our wealth of experience representing different parties in bankruptcy court is your asset. Are you a member of an unsecured creditors' committee? We have represented several creditors' committees in successful reorganizations in Chapter 11. In one case, we won a partial assignment of a bank's claim against a debtor that enabled unsecured creditors to receive a distribution despite the lack of money in the case to pay all post-petition claims. Are you a bank with a lien on the debtor's assets? Our regular practice includes motions for relief from the automatic stay, cash collateral agreements, and negotiating plans of reorganization with debtors. Are you a landlord, equipment lessor or a party to a contract with the debtor? We have negotiated — and in some cases litigated — the way to our clients' successful rejections or assumptions of leases and contracts with commercial business debtors. Have you been sued for receiving a preferential transfer or a fraudulent conveyance? Our attorneys have negotiated, persuaded and litigated multiple preference lawsuits and fraudulent transfer actions. We even have the rare and unusual experience of trying jury trials in preference and fraudulent transfer cases in federal district court.

Contact Our Firm

For a consultation about filing bankruptcy with one of our Worcester Chapter 11 lawyers, contact Seder & Chandler, LLP.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.