Chapter 11 Bankruptcy Lawyer Representing Clients Throughout Oklahoma City
Individuals and businesses who are experiencing financial troubles have the option of filing for Chapter 11 bankruptcy in Oklahoma. This bankruptcy is often referred to as “reorganization” bankruptcy since it often involves reorganizing and restricting a business.
Filing for Chapter 11 bankruptcy is a major decision that should not be taken lightly. If you are considering bankruptcy, it’s important to seek legal representation from the Chapter 11 attorneys at Mitchell & Hammond. Let our team guide you through the process of filing for Chapter 11 bankruptcy and help you achieve financial freedom.
Who Should File For Chapter 11 Bankruptcy in Oklahoma City?
Chapter 11 bankruptcy is an option for both individuals and businesses, but it’s not right for everyone. Filing for Chapter 11 is expensive and time-consuming, which is why it’s rare for an individual to choose this option. However, individuals that do not qualify for chapter 7 or 13 bankruptcy due to their income or amount of debt may have no other choice but to file for Chapter 11.
Filing for Chapter 11 bankruptcy is common among corporations that are experiencing financial difficulties. Taking this step often helps these corporations restructure their business, pay off their debts, and keep their doors open while they get back on track. If you file for Chapter 11 bankruptcy as a business, your personal debts will not be included in the case. Chapter 11 bankruptcy will only deal with your business assets.
How Does Chapter 11 Bankruptcy Work?
The central part of a Chapter 11 bankruptcy is the reorganization plan, which outlines what steps you will take to restructure your finances and repay your debt. The debtor has four months from the date the bankruptcy was filed to submit a proposed reorganization plan to the court.
The terms of the reorganization plan vary on a case-by-case basis. Many reorganization plans include terms that outline how the business will downsize operations by closing stores, laying off employees, or making significant budget cuts. Other plans include terms that outline how the business will immediately shut down and liquidate their assets in order to pay off their debts.
The reorganization plan is not final until it has been approved by the bankruptcy court. The court will approve the plan if it meets the following requirements:
- The plan is feasible, which means if it is followed, the debtor will be able to repay their debts.
- The debtor has proposed the plan in good faith and has no intention to defraud the court.
- The court believes that the reorganization plan is in the creditors’ best interests, which means creditors will receive at least the same amount that they would receive if the case was converted to a chapter 7 liquidation bankruptcy.
- The reorganization plan is “fair and equitable.”
The court can also consider the creditors’ approval of the plan when making this decision. If any of your creditors reject the proposed reorganization plan, the court may reject it as well. But if it meets these requirements and is approved by all of your creditors, the reorganization plan will also be approved by the court. This means you can start making payments and restructuring your finances as outlined in the approved plan.
What Are the Benefits of Filing For Chapter 11 Bankruptcy in Oklahoma City?
There are several benefits to filing for Chapter 11 bankruptcy, including:
- Your business will not have to close simply because you have filed for bankruptcy.
- Your assets will not be liquidated to pay off your creditors, so you will get to keep your property.
- You will typically have control over your assets throughout the Chapter 11 proceedings, so you will not have to surrender decision-making power to the court.
- Your creditors and debt collectors are temporarily prohibited from filing lawsuits against you or harassing you in an effort to collect debts.
Find out if filing for Chapter 11 in Oklahoma City is the right option for you by contacting the attorneys at Mitchell & Hammond today.
Schedule A Free Consultation With Our Chapter 11 Bankruptcy Attorney Today
If you are an individual or business owner in Oklahoma City who is in need of financial relief, filing for Chapter 11 bankruptcy might be the answer. But, it’s important to discuss your legal options with an experienced bankruptcy attorney before making this decision. The attorneys at Mitchell & Hammond will thoroughly review your finances to determine whether or not Chapter 11 is right for you. To schedule a free consultation, call 405-216-0007 or submit your information via the form on this website.