Chapter 11 Bankruptcy Lawyers in Jacksonville
What do Marvel, General Motors, and United Airlines have in common? They are just a few examples of companies that have filed successful Chapter 11 bankruptcies.
What is Chapter 11 Bankruptcy?
Chapter 11 bankruptcy is a form of debt reorganization for businesses (and individuals, in very limited cases). It is also the most complex form of bankruptcy, which is why choosing a highly experienced legal team is critical to your success. At Edwards & Edwards, P.A., we have practiced as a firm since 2013, but our Jacksonville bankruptcy attorneys have over 50 years of combined legal experience. We can help you determine whether Chapter 11 will help your business, and, if so, we can help you complete this process as efficiently and painlessly as possible.
Would you like to learn more about Chapter 11 bankruptcy? Call (904) 478-9255 or contact us online. We can answer all your questions during your consultation.
Who May File For Chapter 11?
Under the law, anyone that is NOT considered to be:
- A governmental agency
- An estate
- Nonbusiness trust
- Commodity broker
- Insurance company
- SBA-licensed small business investment company
An individual may NOT file under Chapter 11 if he or she has had another bankruptcy case dismissed within the last 180 days. Chapter 11 is available to virtually any business or person that is able to afford to file and the expenses that arise.
The Chapter 11 Process
Like all forms of bankruptcy, Chapter 11 triggers the automatic stay. This is a court order that prohibits creditors and debt collectors from seizing your property or collecting your debt in any other way. The automatic stay lasts for the duration of your case, which means you will have anywhere from six months to several years of protection from debt collectors.
Most businesses choose to file under Chapter 11 because Chapter 7 is the only other option. Chapter 7 typically liquidates companies entirely, and businesses don’t receive the debt discharge that consumers do.
Does Filing for Chapter 11 Eliminate Debt?
Once a Chapter 11 plan is approved, the debtor's dischargeable debt(s) are forgiven.
However, the following matters will continue even if filing for Chapter 11:
- Criminal Deft
- Divorce Payments/Debt
- Debt brought by Governmental Agencies to enforce police authority.
Can a Business Survive Chapter 11 Bankruptcy?
Chapter 11 allows companies to restructure their finances and operations without going out of business. Under the protection of the automatic stay, corporations have the time to reduce financial obligations, repay debt, and adjust various elements of their businesses.
Chapter 11 for Small Businesses
In previous years, small businesses have not achieved the same benefits from Chapter 11 as their corporate counterparts. This is because Chapter 11 is expensive, and companies with fewer resources typically can’t afford or navigate the process.
As of February of 2020, however, small businesses have an additional option: Subchapter V of Chapter 11. This section has fewer obstacles and costs, which allows small businesses to reduce their financial obligations without having to convert to Chapter 7 and liquidate their assets. Learn more about Subchapter V, how to qualify, and what it can do for you here.
Schedule your complimentary case evaluation by filling out our online contact form or calling us directly at (904) 478-9255 today. We look forward to helping your company survive financial adversity.
Why Choose Edwards & Edwards, P.A.?
If you come to our firm seeking assistance with bankruptcy, you will receive more than just filing support and representation. With 50+ years of combined experience, our attorneys can assess your situation from many different angles, developing a legal strategy that takes all possible ramifications into account. We are problem-solvers, providing you with the comprehensive, fully customized solutions you need.
The Sisters-at-Law are On Your Side
What Sets Us Apart
Over 50 Years of Combined Experience
Wide Range of Legal Services Available
Responsive to Client Communication
Sister-Owned Firm, Entirely Run by Women