Chapter 11 Bankruptcy in Glendale and Peoria, Arizona

A Glendale Chapter 11 bankruptcy can be filed to reorganize and pay off debt by—

•  Individuals
•  Sole proprietorships
•  Partnerships
•  Corporations
  

Unlike Chapter 13, in most cases Chapter 11 has no limit on the amount of debt.  When considerable assets are involved, Chapter 11—much like Chapter 13 for individuals—allows a company or individual to continue producing income and handle debt based on a repayment plan confirmed by a court-appointed trustee and creditors.  The Law Office of Michael J. Fatta, PLLC can help you evaluate your situation to determine whether filing Chapter 11 in Glendale or Peoria is a viable solution.

Can I file Chapter 11 in Peoria or Glendale for my small business?

Because of the complexity and considerable expense involved in filing Chapter 11 bankruptcy in Peoria or Glendale, the majority of Chapter 11s are filed by larger businesses.  However, under certain circumstances, small businesses can benefit from Chapter 11.  A small business filing Chapter 11 follows slightly different rules. 
To be eligible to file Chapter 11 as a small business, you must qualify as a small business debtor meeting these requirements—

•  Your business must involve commercial activities as opposed to owning and operating real property 
•  Secured and unsecured debts must be $2.19 million or less
•  No creditor's committee is appointed to your case
•  The court finds the creditors' committee is not active enough to provide oversight for your case

 
A small business Chapter 11 receives more oversight by the trustee than other Chapter 11 cases.  As the debtor you are required to attend an initial interview with the trustee, and the trustee watches you closely so there is no delay in determining any inability to confirm a plan. 

You are not granted the same long extensions (18 months) as other Chapter 11 cases, with 300 days being the longest extension allowed for a small business.  Small business Chapter 11 cases usually go through bankruptcy much more quickly than other businesses.

Weighing the pro’s and con’s of Peoria or Glendale Chapter 11 Bankruptcy

Chapter 11 increases your time to pay off debts and provides an automatic stay that stops collections and other legal proceedings.  Many companies find it is worth the expense.  Schedule a consultation to discuss bankruptcy options. 

If you are considering Chapter 11 bankruptcy in Peoria or Glendale, contact the Law Office of Michael J. Fatta, PLLC today.