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Advantages of Chapter 11 Bankruptcy

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Chapter 11 bankruptcy is ideal for corporations which want to continue their operations and at the same time go through reorganization or restructuring of their business to be able to pay creditors and also generate income. Know more about chapter 11 bankruptcy visit . You can contact John M. Crane, P.C. at : 212-571-1898, 718-509-6542 914-380-4209, 914-481-3450 for more information. – PowerPoint PPT presentation

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Title: Advantages of Chapter 11 Bankruptcy


1
Advantages of Chapter 11 Bankruptcy
  • Tel 212-571-1898,?718-509-6542
  • ?914-380-4209, 914-481-3450
  • www.johncranebankruptcy.com

2
  • Chapter 11 bankruptcy is ideal for corporations
    which want to continue their operations and at
    the same time go through reorganization or
    restructuring of their business to be able to pay
    creditors and also generate income. There are
    many advantages of being in chapter 11. Some of
    them are

3
Automatic Stay
  • The debtor benefits from an automatic injunction
    of all lawsuits, foreclosures, repossessions,
    bank levies, wage garnishments and other
    collection activities.
  • The automatic stay is immensely helpful for
    debtors who are facing aggressive collection
    action by creditors, and is the first step in
    reorganization.

4
Right On Business
  • The debtor is still given rights on the business.
  • They will act as a debtor in possession which
    means that the debtor still have some rights to
    acquire the earnings of the business but would
    still prioritize to pay off their debts.

5
Avoidance And Recovery Of Certain Involuntary
Transfers
  • The debtor can avoid and recover certain bank
    levies, wage garnishments, lien notices, even
    repossessions of vehicles or equipment that
    occurred prior to the filing of the bankruptcy.

6
Preservation Of A Going Concern
  • Debtors that are operating a business can
    continue business operation in a chapter 11.
  • The business name, goodwill, and customer base
    are not lost.

7
No Mean Test
  • Unlike Chapter 7 and Chapter 13, the means test
    does not apply to the individual debtors in
    chapter 11 cases
  • They may propose repayment plans that are less
    than five years and therefore, they will end up
    paying less of their disposable income to
    unsecured creditors.

8
Temporary Deferral Of Obligations Incurred
Pre-petition
  • Debtors may be able to temporarily defer making
    certain rent or installment debts.

9
Adjustment Of Interest Rates
  • Debtors can use the reorganization process to
    adjust certain interest rates.

10
Reject Contracts
  • Debtors may be able to "pick and choose" those
    equipment leases, real estate leases, or other
    long term (or "executory") contracts they wish to
    maintain.
  • Debtors can reject any contract that they believe
    is not economically profitable.

11
Extend Payment Of Unsecured Tax Debts
  • Debtors can extend payment of unsecured tax debts
    for up to five years.

12
  • Contact us
  • John M. Crane, P.C.
  • Bankruptcy attorney, White Plains, Manhattan
  • ?Tel 212-571-1898,718-509-6542
  • ?914-380-4209, 914-481-3450
  • www.johncranebankruptcy.com
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