Wilmington Bankruptcy Litigation
The Hogan Firm offers legal advice in Chapter 11
There are different ways that a company can file bankruptcy in Wilmington. Similarly, there are several ways for a creditor to combat the debtor’s right to file for insolvency proceedings.
If you have corporation that is filing chapter 11 in Wilmington, DE, The Hogan Firm can offer you guidance and the strong representation you company deserves.
Filing Bankruptcy in Wilmington
Chapter 11 is used for business bankruptcies and restructuring. This permits businesses to reorganize the company by giving them an opportunity to restructure debt and obtain relief from certain leases and contracts. Typically, businesses are allowed to continue to operate while it is in Chapter 11, although they operate under the supervision of the Bankruptcy Court and its appointees.
To restructure debt without forfeiting the business, debtors file a petition that includes a list of assets and liabilities, and a detailed statement of financial affairs. Several of the business’s assets are sold off to remunerate past due creditors. Debtors must derive a course of action and have it sanctioned by the creditors.
The best thing is that the creditors receive more benefits and money under Chapter 11 bankruptcy than what they would under Chapter 7 bankruptcy. Workers for the company that is filing bankruptcy do not lose their jobs. The assets are kept intact to produce profits.
Creditors registering in court have an opportunity to state their case during Chapter 11 bankruptcy. The creditors develop a restructuring plan if the debtors don’t have any proposals. This plan gives them a chance to take over the company. The shares of such companies are generally considered to be of no value, the owners suddenly are empty handed and have nothing. The court has to confirm the creditors’ plan of restructuring. This means the court has to accept and approve it. Submitting a variety of restructuring plans is quite common under Chapter 11 bankruptcies.
Bankruptcy Attorney in Wilmington
You should have an attorney to keep in close contact with the court and monitor the case until it reaches its conclusion. Chapter 11 bankruptcies are time consuming and expensive chapters; therefore it is appropriate to obtain a bankruptcy lawyer in Wilmington, Delaware.
Call 302-656-7540, toll free 877-221-5176, or email us if your company needs to file bankruptcy in Wilmington, Delaware.