Guidance On Chapter 11 Business Bankruptcy
Financial setbacks don’t necessarily mean you have to shutter your business. Chapter 11 bankruptcy offers a way to reorganize your debts with the goal of becoming profitable again.
Our attorneys at the Law Offices of Craig A. Diehl in Camp Hill offer a comprehensive approach to handling financial problems and Chapter 11 bankruptcies for businesses throughout the Harrisburg area. We are skilled at assisting self-employed individuals and business owners with debt relief assistance, including commercial and tax debts.
When you work with us, you benefit from our team of Pennsylvania attorneys and CPAs. We offer extensive financial experience as well as legal experience in tax and bankruptcy law.
How Chapter 11 Bankruptcy Works
Despite recent changes in bankruptcy laws, businesses can still discharge or restructure unmanageable debt through Chapter 11 bankruptcy. The process involves:
- Preparing detailed financial statements to get a thorough picture of your business assets, cash flow and debts
- Obtaining an automatic stay to prevent creditors from taking action against you while the bankruptcy case is underway
- Meeting with creditors and proposing a reorganization plan to restructure debts in a way that allows your business to remain in operation
- Fulfilling your payment obligations under the reorganization plan
- Getting the remaining debts discharged
When the viability of your business is at stake, it is crucial to work with bankruptcy attorneys such as ours who understand the technical requirements and complexities involved in filing for Chapter 11 bankruptcy.
Mortgage Cram Downs In Chapter 11
In today’s distressed real estate market, savvy business owners are looking to Chapter 11 bankruptcy as an opportunity to wipe out bad business debt, including underwater commercial mortgages. Bankruptcy offers a way to reduce (“cram down”) your debt to match the current property value. It’s available in situations where the property has decreased in value since purchase.
As an example, years ago, your property may have been appraised for double what it’s now. Perhaps you originally secured an $800,000 loan to purchase a $1 million property that is now worth only $600,000. Through a mortgage cram down in Chapter 11 bankruptcy, we can reduce your mortgage loan to $600,000.
Learn How We Can Help Your Business Start Fresh
Bankruptcy offers businesses an opportunity to begin anew. To learn how our business bankruptcy lawyers can help your business get a fresh start, contact us at 717-303-3037 or toll-free at 866-263-3591.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.