WASHINGTON D.C. CHAPTER 11 BANKRUPTCY ATTORNEY
Skillful Debt Relief Counsel in the Beltway Region
Many people believe that Chapter 11 bankruptcy is reserved exclusively for businesses experiencing financial difficulties. The truth is that individual consumers can file for Chapter 11 bankruptcy under certain circumstances.
At The Belmont Firm, we strive to help Washingtonians explore all available debt relief solutions, including Chapter 11 bankruptcy. Our Washington D.C. Chapter 11 bankruptcy lawyer can determine if this approach is right for you and guide you through each step of the process. We understand the intricacies of bankruptcy law and can leverage our knowledge to benefit your case.
Explore your Chapter 11 bankruptcy options in a free initial consultation at The Belmont Firm. Call (202) 875-8445 or contact us online to get started with a Chapter 11 lawyer near you.
The Chapter 11 Bankruptcy Process for Businesses
Businesses that file for Chapter 11 bankruptcy will need to prepare a reorganization plan that aims to address priority tax debt, secured debt, unsecured debt, and leases. Your creditors and the bankruptcy judge and will have to approve of the business’s plan and may submit counterproposals.
Chapter 11 bankruptcy typically allows businesses to protect their assets and continue their usual operations. Expedited (and generally more cost-effective) proceedings are also available to smaller businesses. We regularly help companies explore their Chapter 11 options and guide them through each stage of what can be a complex and sometimes contentious process.
Who Can File for Chapter 11 Bankruptcy?
Chapter 11 is available to:
- Corporations and LLCs seeking to reorganize their debt while continuing operations.
- Sole Proprietors whose business debts exceed their ability to pay.
- Individuals with significant assets and liabilities exceeding the limits of Chapter 13 bankruptcy.
When Should an Individual File for Chapter 11 Bankruptcy in Washington D.C.?
Business organizations – including limited liability companies (LLCs), partnerships, and corporations – generally use Chapter 11 bankruptcy as a means of reorganizing debts, obligations, and assets. However, there are certain situations where individuals can also benefit from Chapter 11 bankruptcy.
Chapter 11 and Mortgages
Individual real estate investors can also utilize Chapter 11 bankruptcy to rewrite mortgages. You can reduce the principal balance owed on a mortgage to the current value of the property. For example, if the property is currently worth $200,000 but you owe $250,000, Chapter 11 bankruptcy allows you to reduce the principal balance to $200,000. Chapter 11 bankruptcy can also help you reduce interest rates extend loan terms by up to 360 months (or 30 years). This will reduce your monthly mortgage payment amount.
It can be challenging to determine what type of bankruptcy is right for your situation. Our Washington D.C. Chapter 11 bankruptcy attorney can review your circumstances and needs and advise which type of bankruptcy you are eligible for and which approach is likely to provide the maximum amount of relief.
What is the Unsecured Debt Limit for Chapter 11?
Individuals may want to consider Chapter 11 bankruptcy if their unsecured debts exceed the Chapter 13 debt ceiling. The current unsecured debt limit for Chapter 13 bankruptcies is set at $360,475. If you have unsecured debts greater than $360,475, Chapter 11 bankruptcy – which has no limit – may be your only option.
Unsecured debts include:
- Credit card debt
- Medical debt
- Personal loans
- Unpaid utility bills.
When to File Chapter 7 Instead of Chapter 11
It is generally more advantageous for individuals to file for Chapter 7 bankruptcy if they have little to no current income. The Chapter 7 process is generally more expedient and less expensive than the Chapter 11 procedure. If you qualify under the income-based Means Test, Chapter 7 bankruptcy may be the most advantageous path forward.
Chapter 13 vs Chapter 11
If you do have reliable income, Chapter 13 bankruptcy may still be a preferable choice. Chapter 13 bankruptcy functions similarly to Chapter 11 bankruptcy, but filers of Chapter 13 benefit from the automatic stay. This court order stops all collection actions, including foreclosure, repossession, and wage garnishments. Chapter 11 bankruptcy filers do not receive this relief.
For more information or to get started on your Chapter 11 case, contact Belmont Law Firm today.
THE CHAPTER 11 BANKRUPTCY PROCESS FOR INDIVIDUALS
Individual Chapter 11 bankruptcies work similarly to Chapter 13 bankruptcies. One key difference is that Chapter 11 bankruptcies will not benefit from the automatic stay.
How Does Chapter 11 Work?
Chapter 11 bankruptcy filers will need to develop, submit, and confirm a repayment that reorganizes all debts and obligations. This plan will consolidate your debts and obligations into a single monthly payment. The amount of this payment is tied to your current ability to pay, not the size of your debt.
In a Chapter 13 bankruptcy, this plan must generally be submitted within fourteen days of filing. There is no set time limit for a Chapter 11 bankruptcy. Creditors do have the ability to submit a repayment plan to the bankruptcy court on the filer’s behalf, but this is not especially common due to the expenses involved.
Chapter 13 bankruptcy reorganization plans can last up to sixty months, or five years. Chapter 11 bankruptcy plans have no set limit and can last for decades, if necessary.
This can potentially provide filers with more flexibility. However, spousal support obligations must be paid in full shortly after the confirmation of the plan. Tax debt must also be paid in full within five years.
Once you have completed your repayment plan, the bankruptcy court will generally permit you to discharge any remaining unsecured debts. This includes credit card debt, medical debt, personal loans, and unpaid utility bills.
Why Choose The Belmont Firm for Chapter 11 Bankruptcy?
At The Belmont Firm, we understand the complexities of Chapter 11 bankruptcy and the importance of preserving your business and assets.
What Sets Us Apart?
- Experienced Bankruptcy Attorneys: With years of experience handling complex bankruptcy cases, we guide you through every step.
- Customized Solutions: We develop strategies tailored to your specific business needs.
- Negotiation Expertise: Skilled in negotiating with creditors to achieve favorable terms.
- Commitment to Clients: Dedicated to providing compassionate and professional legal support during challenging times.
Call (202) 875-8445 Today
Our team at The Belmont Firm is extensively familiar with the intricacies of the Chapter 11 reorganization process. Our Washington D.C. Chapter 11 bankruptcy lawyer can help you create a plan that addresses your debts while providing you with the relief you need to move forward.
Get the guidance you need when considering Chapter 11 bankruptcy by calling (202) 875-8445 or contacting us online. Same-day appointments and payment plans are available.
FAQs About Chapter 11 Bankruptcy
How long does Chapter 11 bankruptcy take?
The timeline varies depending on the complexity of the case. Most Chapter 11 cases take between 6 months and 2 years to complete.
Can small businesses file for Chapter 11?
Yes, small businesses can file under Chapter 11. Recent laws, like the Small Business Reorganization Act (SBRA), provide a streamlined process for eligible small businesses.
What is a debtor-in-possession (DIP)?
A debtor-in-possession is a business that retains control of its operations and assets while undergoing Chapter 11 bankruptcy.
Will Chapter 11 bankruptcy wipe out all debts?
Not all debts are discharged in Chapter 11. The reorganization plan typically addresses secured debts, unsecured debts, and priority claims.
What happens if the reorganization plan is not approved?
If the plan is not approved, the court may allow you to revise the plan or convert the case to Chapter 7 for liquidation.
Does filing for Chapter 11 affect credit?
Yes, filing for bankruptcy affects credit, but it also provides an opportunity to rebuild financial stability.
Understanding the Benefits of Chapter 11 Bankruptcy
Chapter 11 bankruptcy is often misunderstood. While many associate it with business failures, it can be a powerful tool for individuals seeking financial relief and a fresh start. By filing for Chapter 11, you can not only reorganize your debts but also retain control over your assets while working towards a feasible plan for repayment. Our seasoned attorneys at Belmont Law Firm are committed to guiding you through this complex process with clarity and confidence.
Here’s why considering Chapter 11 bankruptcy might be beneficial for you:
- Flexibility: Unlike Chapter 7, Chapter 11 allows you to restructure your debts and creates a repayment plan that fits your financial situation.
- Asset Retention: You can keep valuable assets such as your home or business during the bankruptcy process, safeguarding your financial future.
- Creditor Negotiation: With the help of an experienced attorney, you can negotiate better terms with creditors, often lowering payments or restructuring debts significantly.
- Rebuild Your Credit: Successfully completing a Chapter 11 plan can improve your credit score over time as you demonstrate your commitment to repaying debts.
At Belmont Law Firm, we understand that every financial situation is unique. Schedule a consultation with one of our knowledgeable attorneys today to explore whether Chapter 11 bankruptcy is the right choice to help you regain control of your financial future.
Your Rights and Protections Under Chapter 11 Bankruptcy
Filing for Chapter 11 bankruptcy can be a daunting experience, but understanding your rights is crucial to navigating the process effectively. Under Chapter 11, both individuals and businesses are afforded specific protections intended to aid in reorganizing debts while maintaining operational continuity. Our knowledgeable team at Belmont Law Firm is committed to ensuring that you are well-informed about these rights, letting you make strategic decisions throughout your bankruptcy journey.
Key protections include:
- Automatic Stay: Once you file for Chapter 11, an automatic stay goes into effect, halting most collection actions against you. This provides the breathing room necessary to reorganize your debts.
- Retention of Assets: Unlike some other forms of bankruptcy, Chapter 11 often allows you to retain ownership of your assets while you restructure your debt obligations.
- Reorganization Plan: You have the flexibility to create a tailored repayment plan that can stretch over several years, allowing manageable payments to creditors.
- Negotiation Power: This chapter enables you to negotiate directly with creditors to revise your debt terms, often leading to a more favorable outcome.
- Discharge of Debts: Upon successful completion of the reorganization plan, certain debts can be discharged, providing you with a fresh financial start.
At Belmont Law Firm, we are dedicated to helping our clients understand and leverage these protections. Our experienced attorneys will work tirelessly to ensure your rights are upheld, guiding you every step of the way through the Chapter 11 process. Contact us today to learn more about how we can assist you in reclaiming your financial future.
How Belmont Law Firm Can Simplify Your Chapter 11 Bankruptcy Journey
Navigating the complexities of Chapter 11 bankruptcy can be overwhelming, but you don't have to face it alone. At Belmont Law Firm, we believe that knowledgeable guidance and personalized support are crucial during this challenging period. Our team of experienced bankruptcy attorneys is dedicated to providing you with a stress-free experience by simplifying the legal process and ensuring you fully understand your options.
Here's how we can make a difference:
- Personalized Consultation: We offer a no-obligation initial consultation to assess your unique financial situation and craft a tailored approach that meets your needs.
- Comprehensive Documentation Assistance: Our team will help you gather, prepare, and file all necessary documentation, ensuring everything is accurate and submitted on time to avoid delays.
- Ongoing Legal Support: Throughout the bankruptcy process, we will be by your side, providing consistent updates and answering any questions you may have.
- Post-Bankruptcy Planning: After your case is resolved, we provide guidance on rebuilding your credit and managing your finances to help you achieve a brighter financial future.
Your financial well-being is our priority. Contact Belmont Law Firm today to discover how we can simplify your Chapter 11 bankruptcy experience and help you regain control of your financial life.
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