Chapter 11 Bankruptcy
A Chapter 11 bankruptcy allows debtors to pay back unsecured debts partly. They can continue to run their business peacefully as the law initiates an automatic stay on creditors contacting the debtors. Unsecured debts can be restructured over longer periods if payments are lower.
It is important to remember that a Chapter 11 bankruptcy requires proving to the court that it is in the benefit of the business to be allowed time to re-organized or even sold. And that by providing a line of credit and preventing creditors from seeking repayment for some time, the business can actually emerge as stronger and more profitable.
The Law Office of Rowena N. Nelson has emerged as the preferred legal experts for businesses staring at potential bankruptcy in Northern Virginia. Contact us for free legal consultation.
We will be happy to help.