Will I Have to Close My Business if I File For Bankruptcy?

If you believe your business has potential and want to keep it up and running while you file for bankruptcy, Chapter 11 may allow you to do this. Chapter 11 bankruptcy, often referred to as a “reorganization” bankruptcy, lets businesses stay open while in the process of getting their finances back on track.

If you live in Alabama and are considering filing for bankruptcy, a Moody bankruptcy attorney can explain the process and even help you make an informed decision on the matter.

What happens after I file for Chapter 11 bankruptcy in Alabama?

Once you submit your bankruptcy petition (i.e. the forms and documents needed to begin the bankruptcy process), you, the debtor, will need to create a plan of reorganization. This will outline how you intend on paying back your creditors over the period of time in which you’re under bankruptcy protection.

If you aren’t sure how to create a plan of reorganization or what belongs in it, a Moody, AL bankruptcy lawyer can help you should you decide to hire one.

After you provide your plan to those creditors “whose rights are affected,” they will be given the opportunity to vote on it (1). If your plan gets the required number of votes and complies with all legal requirements, it is then presented to the court for confirmation.

Your business may be able to borrow additional money while protected under Chapter 11 bankruptcy.

Chapter 11 bankruptcy not only helps debtors with businesses get their finances in order but also allows them to keep their business operations running. There are many factors that can drive a business’s debt high, but that doesn’t always indicate the business is failing. Sometimes, with a little reorganization, a business is given the tools it needs to carry on and thrive.

If you think your business would benefit from Chapter 11 bankruptcy, the Alabama bankruptcy attorneys at Hill, Gossett, Kemp & Hufford, P.C. would be happy to sit down with you to determine if your circumstances qualify you to file. The lawyers at this firm understand the severity of the matter and will give your case the attention it needs and deserves.

Schedule a time to speak with a bankruptcy lawyer in Moody, AL today by contacting Hill, Gossett, Kemp & Hufford, P.C. at one of their office locations listed down below.

Have questions about this article or a legal concern? Call 800-672-3103.

Disclaimer: No representation is made that quality of legal services provided is greater than the quality of legal services provided by other attorneys.

Hill, Gossett, Kemp & Hufford, P.C. can be reached at:

Moody Office

2603 Moody Parkway, Suite 200

Moody, Alabama 35004

Phone: (205) 640-2000

Website: www.hwhlawgroup.com

Leeds Office

7900 Parkway Drive

Leeds, AL 35094

Phone: (205) 699-5500

Springville Office

6441 U.S. Highway 11