Chapter 11 Bankruptcy Attorneys In Pennsylvania Help Your Business Reorganize
What Is Chapter 11 Bankruptcy?
Chapter 11 bankruptcy generally provides for reorganization, usually involving a corporation or partnership. A Chapter 11 debtor typically proposes a plan of reorganization to keep its business alive while paying creditors over time.
The following describes what to expect in a typical Chapter 11 bankruptcy case. Contact our commercial bankruptcy lawyers for a more detailed explanation and for specific insight on what your business can expect. More information is also available on our Frequently Asked Questions page.
Filing The Petition
Each Chapter 11 case begins with the filing of a petition with the appropriate Pennsylvania bankruptcy court. Unless otherwise ordered by the court, you must also file the following:
- Schedules of assets and liabilities
- A schedule of current income and expenditures
- A schedule of executory contracts and unexpired leases
- A statement of financial affairs
A $1,000 case filing fee and a $46 miscellaneous administrative fee must be paid to the clerk of the bankruptcy court upon filing.
Reorganization Plan And Disclosure Statement
A disclosure statement and a reorganization plan must be filed with the bankruptcy court. The reorganization plan sets forth in detail how you intend to conduct business while continuing to make payments to creditors. The disclosure statement must contain facts and figures regarding the assets, liabilities and business affairs of your business.
Plan Approval And Confirmation Hearing
The plan approval process involves negotiation and participation of your creditors, but eventually, the plan must be approved by the court. Once the disclosure statement is approved by the court and the creditor ballots are collected and tallied, the court will hold a confirmation hearing to determine whether or not to confirm your plan. Sometimes the court approves the plan even if some of the creditors disapprove. If no plan is approved, the bankruptcy can be converted to a Chapter 7 or may even be dismissed.
Get Connected With A Pennsylvania Chapter 11 Bankruptcy Attorney
Our trusted attorneys are ready to answer your Chapter 11 bankruptcy questions and help your business get back on the right track. Contact our experienced southeastern Pennsylvania bankruptcy law firm today to discuss your case. Our three offices are conveniently located in Lancaster, Malvern and Wyomissing. Contact Case & DiGiamberardino, P.C., at 610-936-6650 or online.