Mandeville Attorneys Provide Legal Assistance with Chapter 11 Bankruptcy in Louisiana
St. Tammany Parish law firm helps businesses reorganize their debts
Many times in the life cycle of a company or corporation, it may face declining profits, escalating costs, contracts that fall through or other challenges. For a business to remain viable and literally keep its doors open, it may need temporary protection from creditors. Creditors are not, as a rule, given to waiting in line for what they’re owed. Each of them wants to come first and will put deep and painful pressure on a debtor business to acquire that privilege, but The De Leo Law Firm, LLC in Mandeville can make them wait through a Chapter 11 bankruptcy. We help companies of all sizes throughout the Eastern District of Louisiana to restructure their operations and pay off their debt while remaining open for business.
Experienced lawyers advise on eligibility requirements for filing Chapter 11
When businesses face overwhelming debt, they may be able to remain operational by filing Chapter 11. This bankruptcy chapter allows a partnership, corporation or limited liability company to restructure its operations and repay its debt over time rather than liquidating its assets, as happens in a Chapter 7 bankruptcy. If your business voluntarily proposes a reorganization plan under Chapter 11, it must be in the best interests of your creditors. Our firm will advise you on whether reorganizing your business through Chapter 11 is the best option in your situation. Individuals can also file for Chapter 11 relief and this may be the only option available to reorganize if your debt exceeds the Chapter 13 debt limits.
Northshore attorneys advise individual and business clients on the requirements for new Subchapter V of Chapter 11
Effective February 19, 2020, a new subchapter to Bankruptcy Chapter 11 has been created to stream
line the Chapter 11 process for individuals and for businesses. For an individual to be eligible, the
majority of debt must be business (or tax), as opposed to consumer related. Individuals and businesses are only allowed to proceed under the new Subchapter V if their total debt is $2,500,000 or less. Under new Subchapter V, no U.S. Trustee fees are paid and there is no requirement for a debtor-in-possession bank account. In some instances, debt on an individual’s primary residence may also be reduced. New Subchapter V is a much more cost effective, quicker alternative to Chapter 11.
Skilled Louisiana attorneys guide clients through the process
Chapter 11 is available for the reorganization of both individuals and businesses. The first step in the Chapter 11 process is to file a bankruptcy petition with the Bankruptcy Court. The petition should list all of your assets, income, expenses, debts and creditors, and summarize your financial affairs. If we represent you and you decide to file a Chapter 11 bankruptcy, we will prepare the petition, based on documents and information you provide, and file it for you.
Your company will propose a schedule of repayment to the court, which will either approve or modify it. If your business does not propose this plan within a certain time limit, your company’s creditors may. The court will examine the state of the business, including all financials, contracts and proposed plans. It will look at how much business your company will be conducting, what its current assets are and what will be required to conduct operations, and the debts your company owes.
A Chapter 11 bankruptcy is very much like the Chapter 13 bankruptcy for individuals but Chapter 11 has no debt limit such as that which exists in Chapter 13. It allows protection from legal actions, suits and repossessions and modifies contracts so that your company has a reasonable chance to repay its creditors. It can even be used to restructure your tax payments to make them easier to pay. However, not all debts can be discharged by bankruptcy. No bankruptcy scenario will allow a debtor to avoid paying alimony, child support, educational loans or criminal restitution orders.
Proven advocates explain how debt reorganization works
Your company must file a plan of reorganization, after which the creditors may file their own plan for the court to consider. To get court approval, your business must get the majority approval of various groups of creditors and may be required to negotiate with them. Even if you do get sufficient approval, if a creditor still objects and negotiations fail, you may ask the court to approve the plan over that creditor’s objections. We prepare and file the plan and negotiate the necessary approvals for our clients.
Once the plan of reorganization is approved, your business must make the mandated payments. Existing contracts will be modified by the court to fit the terms of the repayment plan. After your company has made all the payments, it petitions the court for a final decree, which closes the case. At that point, your business emerges from bankruptcy, hopefully stronger and more likely to succeed in the future.
Contact a skilled Louisiana Chapter 11 bankruptcy firm
The De Leo Law Firm, LLC in Mandeville represents Louisiana individuals and businesses seeking protection through Chapter 11 bankruptcy. To be certain that you receive the best representation possible in this complex process, call us at 985-685-1487 or contact us online to schedule a free consultation.