What is Chapter 11 Bankruptcy?
Chapter 11 reorganization, also called liquidation bankruptcy, is filed by businesses like corporations and partnerships or individuals who owe more than approximately $1.1 million dollars of debt.
What’s the difference between Chapter 7 and Chapter 11 Bankruptcy? Chapter 11 reorganization helps keep businesses afloat while they reorganize their debts and come up with a repayment plan, hence reorganization. Chapter 11 could be beneficial to a company because it allows for the reorganization of debt so that the business can reemerge as a healthy entity.
Benefits of chapter 11 Bankruptcy:
- Adjustment of interest rates
- Protect creditors from harassment
- Borrow post-petition
- Assume or reject unexpired leases or contracts that are deemed unprofitable
- Cure defaulted obligations like lease or mortgage
- Sell property free and clear of liens and interest
Call Chapter 11 Bankruptcy Orlando Bankruptcy Lawyers for a
Free Consultation. 407-412-7041.