Chapter 11

If you are a small-business owner who is facing unmanageable debt and struggling to meet your payroll, taxes and other expenses, Chapter 11 bankruptcy may be your best option for financial relief. While Chapter 11 is primarily designed for businesses, certain individuals may also qualify if their debts exceed a certain amount.

At the law office of Ast & Schmidt, P.C., in Morristown, New Jersey, we have the experience it takes to guide your business through the Chapter 11 process, help protect your personal assets, and secure your short- and long-term financial interests. Attorney David Ast brings over 25 years of experience to every case he handles, and his clients trust him to provide professional, competent and committed representation every step of the way.

In the midst of the current financial crisis, more and more small businesses are being forced into bankruptcy. Let us help you protect your rights, inform you of your options and help you successfully navigate the Chapter 11 bankruptcy process. Contact us today to schedule a free initial consultation.

Protecting Your Business Through Reorganization

Certain events and situations that businesses encounter may precipitate financial difficulties that call for debt resolution with their creditors. Chapter 11 bankruptcy, also known as "reorganization," allows businesses to continue operating with protection from your creditors and oversight by the bankruptcy court.

In the life of your business, you may have suffered an unexpected loss, failed to receive payment for your services or products, be affected by the turmoil of the financial crisis or have a family emergency that makes you unable to keep your business profitable. Meanwhile, your obligations to your creditors, employees and the IRS continue.

Our experienced business bankruptcy attorney can assist you in business bankruptcy matters relating to or arising from:

  • Failure to pay withholding taxes
  • Sales tax
  • Failure to file tax returns
  • Purchase or sale of a business
  • Business assets
  • Offer in compromise
  • Creditor issues

Let Our Experience Help You

Like Chapter 13, Chapter 11 bankruptcy also involves a restructuring of debt. It allows businesses to continue to operate while paying back creditors over time. However, it is typically more time-consuming and complicated than a Chapter 13.

Moreover, there is significantly more creditor involvement in the process. Approval of creditors to confirm the repayment plan is generally needed, and the bankruptcy trustee will invite top 20 creditors to form a creditors' committee to investigate the activities of a business and negotiate the plan of reorganization.

Strategic Advocacy For Your Chapter 11 Bankruptcy

Because a Chapter 11 bankruptcy is a legally and procedurally complex process, it calls for the assistance of an experienced and skilled bankruptcy lawyer. Filing usually triggers immediate litigation and numerous required motions. Chapter 11 requires disclosure statements where a business debtor must demonstrate feasibility of the repayment plan, affirming to both creditors and the court that the business can really meet the obligations it proposes in the plan.

Under the law, any business larger than a sole proprietorship seeking Chapter 11 debt relief must be represented by a bankruptcy attorney. With so many hurdles to jump and pitfalls to avoid, take the right steps to understand your rights and obligations as a business owner under the bankruptcy law. To learn more about how Chapter 11 can provide the debt solution that your business needs, contact our office today to discuss your situation.

Contact Ast & Schmidt, P.C., to schedule a free initial consultation with an experienced bankruptcy lawyer. We offer flexible hours, Monday through Friday, and evening appointments are also available. Our office is conveniently located across the street from the Morris County Mall.

Ast & Schmidt, P.C., is a debt relief agency. We help individuals file for bankruptcy relief under the Bankruptcy Code. The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.