Chapter 11 bankruptcy is one option that businesses with severe debt can take to try to improve their financial situations or have their debts discharged. Under Chapter 11 bankruptcy, a business can continue normal business operations while being protected from litigation and receiving favorable loan terms.
Eligibility for Chapter 11
To be eligible for Chapter 11 bankruptcy protection, a business must meet certain requirements. These include:
- Must be any business entity (partnership, single ownership, corporation) with significant debt obligations
- Must file all important financial records, including any contracts or leases, a list of all assets and liabilities, and current income
- Must not have failed to appear in court, disobeyed court orders, or have filed a rejected bankruptcy application in the preceding 180 days
- Must have received credit counseling from a qualified advisor within 180 days prior to filing for bankruptcy
If your business meets these criteria, then you may be eligible for Chapter 11 bankruptcy.
If you or someone you know has a business with significant debt problems and is considering filing for bankruptcy, you should consider retaining the services of an experienced legal professional. Contact the Milwaukee bankruptcy lawyers of the DeLadurantey Law Office, LLC, at 414-377-0518 to discuss your situation and learn more about your options.