At the time of filing a petition declaring bankruptcy you will need to provide the court with a statement known as the disclosure statement that essentially lists out all of your assets and debts. This list of assets and debts must be on record in the court where you are filing for Chapter 11 bankruptcy. Only after this is done can you file a plan for reorganization and to help you follow the bankruptcy procedures in the best manner you should consider using the services of a Chapter 11 bankruptcy lawyer.
Chapter 11 deals with the reorganization of a particular business and as everyone knows an organization is a distinct entity from the shareholders and owners. However, in the case of sole proprietorship there is just one owner who is the debtor. It is well known that any bankruptcy petition will include both an owner’s assets as well as the assets of the business.
Be Represented In Court
To handle your Chapter 11 bankruptcy you will do well to appoint a Chapter 11 bankruptcy lawyer who will deal with your case in the courts. In addition, a Chapter 11 bankruptcy lawyer wills advice you whether or not this form of bankruptcy is the best solution for your business. The fact of the matter is that most businesses in financial trouble generally do not consider filing for Chapter 11 bankruptcy as their first choice.
In fact, Chapter 11 bankruptcy is mostly used by the bigger corporations when they are in need of reorganization their debts. A Chapter 11 bankruptcy lawyer will however also be able to show when it is necessary for individuals as well as businesses to enter into reorganization activities and how to also buy sufficient time in which to pay off existing debts.
If your debts exceed more than US$ 336, 900.00 and these debts are unsecured or you are entering into divorce proceedings, or are involved in lawsuits or are medically ill or have lost your income or your business has failed; it is then time for you to hire a Chapter 11 bankruptcy lawyer to help you file for Chapter 11 bankruptcy.
Whether or not you plan on filing for Chapter 11 bankruptcy it is still necessary that you understand what it takes to easily find a bankruptcy lawyer that is reputable and who will provide you with top class service. Some of the people that are usually most in need of hiring a Chapter 11 bankruptcy lawyer include doctors, lawyers, contractors, dentists, actors, and even professional athletes as well as anyone else with huge net worth and who need to reorganize their finances in order to regain their financial health.