Ayres, Shelton, Williams, Benson & Paine Lawyers who Practice in area above: Curtis R. Shelton and Jennifer N. Soto.
Chapter 11 Bankruptcy Law Center, PLC is a Shreveport-Bossier Louisiana Business Bankruptcy Law Firm that helps businesses and high net worth individuals file for Chapter 11 bankruptcy reorganization relief. Make no mistake about it, filing under Chapter 11 is a momentous event for the business and the Chief Executive Officer. Long before our firm places the bankruptcy petition in front of our clients for signature, our business bankruptcy lawyers make sure that our clients understand the process, appreciate their duties, and are aware of the costs and benefits of filing a Chapter 11 case.
A Chapter 11 Bankruptcy Reorganization Case has three phases, and it consists of the Case Filing Phase, the Administrative Phase and the Plan Confirmation Phase.
The Case Filing Phase starts when you contact the business bankruptcy lawyers at our Shreveport-Bossier Louisiana Office. Together we review and analyse your business operations to clarify and understand current circumstances; then, we determine how a reorganization plan might work for your business. Timing can be critical. If it is necessary to stop a foreclosure, tax seizure or land lord lock out, etc., a Chapter 11 Bankruptcy Petition can be filed immediately. The “section 362 automatic stay” which stops virtually all collection activity and protects and preserves assets and ongoing value is issued when the petition is filed. Numerous First Day and Administrative Motions must be filed to ensure compliance with the rules and requirements related to operating a business during a Chapter 11 Bankruptcy Reorganization case. All Schedules, Statements and Exhibits must be completed and filed.
The Administrative Phase begins as the business starts to operates as the debtor in possession under the protection of the bankruptcy court. Activity which would be considered within the ordinary course of business proceeds according to certain general guidelines and reporting requirements but without court intervention. Extraordinary events, such as the sale of assets or post bankruptcy borrowing, require notice and court authority. During this time you will also be working with your bankruptcy attorneys to develop the details of your Plan of Reorganization.
The Plan Confirmation Phase begins with the preparation of the Chapter 11 Plan of Reorganization and Disclosure Statement. A Chapter 11 Plan of Reorganization can restructure debt, reject unfavorable leases and contracts, resolve pre-bankruptcy litigation, write down debt in certain circumstances and provide for the orderly liquidation of some or all business assets. If it would be advantageous, the business may emerge from bankruptcy as a new entity with a different legal structure. A Disclosure Statement must be prepared, filed and approved by the court, and it must provide creditors with sufficient information to allow them to vote on the Plan of Reorganization. The creditors, which have been placed into various classes based on the nature of their claims vote to accept or reject the Plan, and at least one class must vote for plan confirmation.
The debtor in possession then emerges from bankruptcy as the Reorganized Debtor, and the old debts and obligations of the business are discharged and replaced by the provisions of the confirmed Chapter 11 Plan of Reorganization.