Chapter 11 Bankruptcy

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Chapter 11 Bankruptcy

• Tel [phone],?718-509-6542
• ?914-380-4209, 914-481-3450
• www.johncranebankruptcy.com

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Chapter 11

• A Chapter 11 bankruptcy allows you to adjust your
  debts without an immediate liquidation of assets.
  
• Both individuals and businesses are eligible for
  Chapter 11 bankruptcy.

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• You may continue to pay your employees, and your
  vendors, to insure that your business stays
  "afloat.
• You may operate as a Debtor in Possession, and
  have complete control over your business. 
• You must report your financial status to the
  Court, every 30 days, and you have 4 months to
  come up with a plan of reorganization.

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Reorganization

• The chapter of the Bankruptcy Code is generally
  for reorganization.
• A chapter 11 debtor usually proposes a plan of
  reorganization to keep its business alive and pay
  creditors over time.

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Chapter 11 bankruptcy may be right for

• Individuals with above-median income and debts
  above statutory limits
• Individuals with significant nonexempt assets and
  debts above statutory limits

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Chapter 11 bankruptcy may be right for

• Entrepreneurs who operate as sole proprietors or
  own a business entity
• Corporations and other business entities which
  seek to remain in business rather than liquidate

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Advantages

• Continued control of assets, subject to Court
  supervision.
• Continued operation of a business, subject to
  Court supervision.
• Immediate relief from creditors.
• A power to reject burdensome leases.

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Advantages

• A power to abandon burdensome assets.
• A power to sell assets free and clear of liens,
  with court approval.
• The ability to pay back taxes over time.
• The power to craft your own plan of
  reorganization, subject to Court approval.

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Advantages..

• Potential elimination of some or all unsecured
  debt.
• Discharge of indebtedness.

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Disadvantages of chapter 11

• The debtor has the obligations of a trustee with
  respect to assets and income.
• At least one class of non-insider creditors must
  consent to the plan of reorganization.
• A Chapter 11 case is more expensive and time
  consuming than other bankruptcy cases.

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• Contact us
• John M. Crane, P.C.
• Bankruptcy attorney, White Plains, Manhattan
• ?Tel [phone]
• ?914-380-4209, 914-481-3450
• www.johncranebankruptcy.com