There are many reasons why individuals and businesses may find themselves facing insurmountable debt burdens that they cannot pay off. When these difficult financial situations arise, Chapter 11 bankruptcy may be a viable option. Under this Bankruptcy Code option, reorganization through a court-approved plan can provide the means for Maryland businesses or qualified individuals to address their financial obligations.
If a business is unable to effectively manage monthly expenses or keep up with what is owed to creditors, then Chapter 11 bankruptcy may be a viable option. Under this type of bankruptcy protection, the business owner will usually still maintain operational control of the organization. However, business owners will have to report financial information to the appointed trustee.
The bankruptcy plan will have to be approved by the court, but the applicant will have a plan with creditors to reorganize the debt that is currently owed. This allows for some balances to be paid off over time, but also protects the applicant from harassment from debt collectors and creditors. The Chapter 11 process for Maryland businesses often lasts a few months. The individual details of the process will differ if the applicant is an individual instead of a business.
Chapter 11 bankruptcy could be the right choice to help you manage your debt. If you own a small business and are considering bankruptcy, find out if you could benefit from reorganization as a viable manner to confront your debt issues responsibly. This is a significant financial decision and one that should only be made after careful consideration. For an individual evaluation of your case, contact a member of our experienced team.