Chapter 11 bankruptcy is best known for the protection it offers corporations and partnerships. It can also extend to individuals with significant assets as it will allow them to pay debts over time without risking attachment or garnishment.
This is a good option for you if you are facing substantial financial hardship but have too much to lose to risk liquidation or burdensome payments under Chapter 7 or Chapter 13. Evans & Evans offers the legal guidance you require to secure Chapter 11 bankruptcy protection. Established in 1958, we are dedicated to clients who require asset protection in Boston North Shore and Essex County.
How Chapter 11 Works
Chapter 11 is considered a “reorganization” bankruptcy. While Chapter 7 or 13 can be fairly disruptive, this type of bankruptcy can allow you to carry on your affairs without interruption. It is a means of putting collection efforts on hold while you figure out a way to pay creditors back.
Once filed, your creditors will file claims for the amounts you owe them. As your attorneys, we will negotiate on your behalf to settle these claims often for pennies on the dollar. Creditors usually work with this process since getting an agreement under Chapter 11 often pays out more money than if they do the same under a Chapter 7 or 13.
After you come to an agreement with your creditors, the court will either confirm or reject the payment plan. As long as your plan is reasonable and compiled in good faith, it is unlikely to be rejected. Once confirmed, you make the promised payments and at the end of the bankruptcy, anything left over is discharged.
Deciding To File Chapter 11
Like any other type of bankruptcy, you consider a Chapter 11 filing when it is apparent your situation is out of control. If you are constantly worried about creditors attaching or garnishing your assets, it is likely time to consider bankruptcy relief. High taxes or lawsuits can also drive you to this step because Chapter 11 will allow for much-needed negotiation in these situations that offer little flexibility otherwise.
If you decide to file a Chapter 11 bankruptcy, be prepared to pay a $1,167 case filing fee and a $550 miscellaneous administrative fee to the court. When you schedule a consultation with Evans & Evans, have a list of your debts available along with a description of any assets.
Chapter 11 bankruptcy can be an effective tool for gaining control of your finances. For legal representation in the Essex County and Boston North Shore area, contact Evans & Evans in Topsfield, MA. Your first consultation with us is free.