Domestic violence was a part of my family's life for years. When I made the decision to leave with my children, I had to rely on the law to provide the protection we needed. Sometimes, the system does not work as fast as we want. I soon learned that going at it alone without any guidance caused significant delays. I created this blog to help others who are seeking legal means to deal with an abusive ex. By making the right moves, it is possible to get the necessary protections in place so that you can also live a happier and healthier life.
When you are struggling as a business owner, you might choose to file for Chapter 11 bankruptcy as a way to restructure your debts. However, after you have filed for Chapter 11, you might find your business is struggling again and you may feel as if you should file for Chapter 11 bankruptcy again. However, you may need to wait before filing again.
When Your Case Is Dismissed
If your case is dismissed because you willfully disobeyed court orders, then you will need to wait for a period of time designated by state law before you will be able to file again.
When You Are Not Eligible for Discharging Your Debts
Even if you are not eligible for discharging your debts, you might consider Chapter 11 to be a good option. For example, when you file for Chapter 11, you will still benefit from an automatic stay on collection efforts. Then, a debtor cannot take actions such as seizing assets to pay for debts.
The Purpose of Chapter 11
When you file for Chapter 11, your goal will be to reorganize your business. You are effectively telling the judge and your creditors that you will be able to pay off your debts by using your company. If your company is a corporation, then the individual shareholders will not have to worry about their assets being affected by the bankruptcy. Only the value of their shares will be affected by the bankruptcy.
As for a sole proprietorship, both the assets of the business and your own assets as an owner will be affected. With a partnership, the partner's assets might be used to pay for the debts and the partner might be required to file for bankruptcy protection. Because filing for Chapter 11 bankruptcy is a major decision that will affect your finances, it is important to always consult with a business bankruptcy lawyer beforehand.
How to File for Chapter 11
Regardless of whether you are filing for Chapter 11 for the first time or not, you will need help from a business bankruptcy lawyer. There are several requirements you will need to meet such as filing the schedules of assets and liabilities with the court. You must provide a statement of all your financial affairs.
You must include a schedule of your income and expenditures. Credit counseling is not necessary for Chapter 11 bankruptcy unless you are an individual debtor.Share