Business Bankruptcy: Chapter 11 & 7
Chapter 11 bankruptcy permits reorganization under the bankruptcy laws of the United States. Chapter 11 bankruptcy is available to any business, whether organized as a corporation or sole proprietorship, and to individuals, although it is most prominently used by corporate entities.
When a troubled business is unable to service its debt or pay its creditors, the business or its creditors can file with a federal bankruptcy court for protection under either chapter 7 or chapter 11. In chapter 7, the business ceases operations and a trustee sells all of the assets and distributes the proceeds to the creditors. A chapter 11 filing is usually an attempt to stay in business while a bankruptcy court supervises the "reorganization" of the company's contractual and debt obligations.
In most instances, the debtor remains in control of its business operations as a "debtor in possession", and is subject to the oversight and jurisdiction of the court. The court can grant complete or partial relief from most of the company's debts and its contracts, so that the company can make a fresh start.
Contact a Northern Virginia Bankruptcy Attorney
If your business is struggling with unmanageable debt and you need help, Manikas Law LLC, can help. Based in McLean, Virginia (Fairfax County), we represent clients throughout Northern Virginia in commercial bankruptcy and personal bankruptcy.
We offer experienced legal representation with an emphasis on personal service. We work diligently to seek the best possible results for each client we serve.
If you need to speak with a bankruptcy lawyer about personal bankruptcy or commercial bankruptcy, contact our Northern Virginia law office today. For a free consultation, call 703-873-7473 or contact us toll-free at 888-503-8075. Feel free to contact us by e-mail as well.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
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