A business can have a viable operation and an unsustainable debt structure. Chapter 11 may provide a framework to address that mismatch. We help assess whether reorganization is practical and which form of Chapter 11 fits.
When the owner needs an individual plan
Chapter 11 is also available to individuals. For an owner personally responsible for business debt, we assess income, assets, guarantees, and the costs and duties of the process. A company’s plan and the owner’s personal obligations need separate attention.
Traditional Chapter 11
The business generally continues as a debtor in possession, subject to court supervision and operating requirements. Work may include evaluating contracts and claims, negotiating with creditors, and developing a plan. A plan needs a realistic financial foundation and a path through the applicable approval requirements.
Subchapter V for qualifying small businesses
Subchapter V provides a different framework within Chapter 11 for eligible small-business debtors. It includes a trustee and distinctive plan procedures. Eligibility and the choice between this route and traditional Chapter 11 depend on current law and the circumstances of the business; a smaller company does not automatically qualify.
Build the operating case before the legal case
We examine cash flow, ongoing expenses, creditor groups, disputed claims, and the owner’s objectives. Can the business fund continued operations? Which obligations need to change? What would a workable plan require? Those questions guide preparation, negotiations, and the decision to proceed.
Representation through the process
Our work can include case preparation, required filings, creditor negotiations, plan development, hearings, and addressing disputes that affect the reorganization. We explain the practical demands on management so owners can understand the work and commitment involved.