Chapter 11 Bankruptcy

Posted October 1st, 2009 by BankruptcyLawyer

Chapter 11 Reorganization Bankruptcy Lawyers

The economic downturn has forced many businesses large and small to file for Chapter 11 bankruptcy. Chapter 11, known also as Reorganization, is a complicated legal process requiring an experienced bankruptcy attorney.

Chapter 11 Bankruptcy in San Antonio

In Chapter 11 bankruptcy, the filing business makes an attempt to come up with a carefully crafted payment plan to reorganize its debt. This payment plan is presented to creditors in bankruptcy court in San Antonio. The creditors then cast ballots to vote on whether or not to accept or reject the plan. If there is an agreement, the plan becomes a new contractual agreement between the parties.

If they disagree, your San Antonio bankruptcy lawyer can attempt to come up with a new plan, or the bankruptcy court can impose the plan on the creditors or the negotiations may simply end up failing. A bankruptcy attorney with the necessary experience can assist you reach a Chapter 11 bankruptcy reorganization plan that creditors or judges will accept.

Bankruptcy Reorganization-What’s Involved?

The Chapter 11 reorganization will most likely involve an attempt to reduce the value of the business’s debts to match the value of the business‘s assets. Debts in excess of the value of the business assets are treated as unsecured, and a large amount of them can be discharged. Secured debts can also be renegotiated or litigated to achieve a decreased interest rate and for a longer repayment duration.

To learn more about bankruptcy in the San Antonio area, you can schedule an appointment for a free initial consultation with one of the members of our legal team. Just call (210) 807-4252 or contact our offices online.