Chapter 11 Bankruptcy in Jacksonville

Reorganizing Your Debt While Remaining in Business

Chapter 11 bankruptcy is the option for a corporation or partnership in financial trouble that wishes to remain in business and avoid liquidation. Chapter 11 bankruptcy allows for the reorganization or rehabilitation of a business.

The goal is to restructure the business and debt payment so that the business meets its obligations from future earnings.  Meet with the attorneys at King & Dolaghan, P.A. to learn about business bankruptcy in Jacksonville.

Filing for Jacksonville Chapter 11 Bankruptcy

A debtor that files for Chapter 11 bankruptcy becomes a debtor-in-possession and is given the change to prepare a reorganization plan that must be approved by a majority of the creditors.  If the creditors approve the plan and the court confirms it, the plan is binding on both the debtor and the creditors.

In the plan, the debtor-in-possession may reduce its debts by repaying a part of its debts and discharging others.  A debtor-in-possession also may termination contract and leases that are burdensome, may recover assets, and may rescale its operations so that it can return to being profitable.

In a Chapter 11 bankruptcy, the debtor usually goes through a consolidation period, which results in a reduction in debt and a reorganized business.  A reorganization plan can use these strategies:

• Repayment of debt out of future profit
• The sale of some or all of the business’s assets
• Merger
• Recapitalization

Speak with our attorneys about your business’s financial troubles and whether Chapter 11 bankruptcy may be the best choice to rehabilitate your business.

Call 1-904-387-9886 about business bankruptcy in Jacksonville.