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Rockville Chapter 11 Bankruptcy Lawyer

Filing for a Chapter 11 Bankruptcy in Germantown & the Surrounding Areas

If your business is struggling and you are wondering whether a Chapter 11 bankruptcy is right for your situation, The Diamond Law Group is here to help. We leverage our proven experience to reorganize and consolidate your debts, working with you to devise a plan that prioritizes your best interests. We will help take the legal burden off your shoulders so you can focus on running your business.

If you are thinking about filing for bankruptcy, reach out to our firm today to learn how we can help during a free, no-obligation consultation. Call us at (301) 417-5855 or contact us online. We will respond within 24 hours.

What Is a Chapter 11 Bankruptcy?

A Chapter 11 bankruptcy allows a small business owner, corporation, sole proprietorship, or other business that has gone into debt to either cease operating and discharge their liabilities or reorganize their debt under a Court directed plan while continuing to operate. Chapter 11 bankruptcy also allows individuals with a substantial income that disqualifies them from filing under Chapter 7, or substantial debt that disqualifies them from filing for Chapter 13, to file under Chapter 11. This type of bankruptcy allows you to stay in control of your business while paying off debt and getting your business back on track.

Under Chapter 11, a business files for bankruptcy and follows a court formulated plan to reorganize and consolidate their debt. This plan is what allows the business to continue operating while eliminating debt and achieving profitability once again.

You should consider a Chapter 11 bankruptcy if:

  • You are a small business or corporation.
  • You are an individual with substantial income or substantial debt.
  • Your business is struggling, and its liabilities exceed income.

How a Chapter 11 Bankruptcy Works

To begin the process, a corporation or business must file for a Chapter 11 bankruptcy and provide the Court with all the information about its assets and liabilities. Once filed, collections are halted against the company and the Court then constructs a reorganization plan tailored for the business in which the business continues to operate under the Court’s supervision and debt is restructured. After completing the plan, the debt-free company can once again pursue profitability.

Chapter 11 Bankruptcy Steps

Chapter 11 bankruptcies usually take between one and two years to complete. The company files for bankruptcy and then a reduction of obligations is negotiated with creditors. Creditors will usually be more open to Chapter 11 since the alternative, a Chapter 7 liquidated bankruptcy, will usually give them substantially less returns. The company is then reorganized to ensure profitability. Creditors are allowed a say in how the company is reorganized and the Court approves the final plan.

This process is supervised by a Court appointed trustee to ensure there is equity and fairness in the process. The Court will have special authority over all matters that do not have to do with the day-to-day operations of the company and would have to authorize sales of property, mortgage arrangements, major changes in business operations, reorganization of company operations, and other actions that significantly change the company’s operations.

Chapter 11 bankruptcies allow individuals to retain control of their company and put them back on the road to financial profitability. Consult with our lawyer to learn if Chapter 11 is right for your specific situation. A good lawyer knows how the company should be restructured and debt reorganized to ensure that the company is brought out of debt as efficiently as possible.

Contact The Diamond Law Group today to learn more.

The Diamond Difference

  • Supportive.

    We want to see you succeed in your case and are committed to doing our best work to make this happen.

  • Experienced.

    Our proven results and extensive experience will help generate a favorable outcome.

  • Accepting.

    We aim to be your closest confidant and promise not to make any judgments, ever.

  • Reliable.

    Our policy is to return all correspondence within a 24 hour period - you'll never be left in the dark.

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