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Chapter 11 Bankruptcy

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Chapter 11 Bankruptcy Attorney in Miami

Is Your Business Overwhelmed by Debt?

As a business owner, you know that having debt isn’t always a problem – it’s just a part of business. It can become overly burdensome, however, if your company is experiencing financial hardship as a result of a downturn in revenue or unplanned acquisition of debt. When your debt liabilities become too unwieldy, you may begin to wonder if Chapter 11 bankruptcy can help you save your business.

If you need a legal guide to help you explore your options in business bankruptcy, reach out to Wesoloski Carlson, P.A. Our attorney has nearly 20 years of experience building Chapter 11 debt repayment plans for clients and their businesses. You don’t have to give up everything you’ve worked hard to build if you’re dealing with unforeseen problems with your company’s debt. Get help from an experienced Chapter 11 bankruptcy attorney in Miami by reaching out to Wesoloski Carlson, P.A. today.

Call (800) 449-4850 or complete our online contact form to request a free initial consultation. We offer this complimentary meeting by phone or video conference for your safety and convenience.

What Is a Chapter 11 Debt Repayment Plan?

Chapter 11 bankruptcies are generally the most complicated types of bankruptcy cases. While exploring alternative options first is generally advisable, sometimes it makes the most sense to pursue this form of bankruptcy.

Some key benefits of Chapter 11 bankruptcy include the following:

  • Unlike Chapter 7, liquidation is not a requirement (unless a creditor demands it in your plan)
  • Business owners often maintain control over their companies (known as debtor-in-possession)
  • Chapter 11 bankruptcies can stop foreclosure proceedings
  • Chapter 11 has no specific qualification requirement for how much debt you can or must owe
  • Chapter 11 bankruptcies can be quicker under Subchapter V if the debtor owes less than $2.75 million

Central to any Chapter 11 case is a repayment plan – sometimes also referred to as a reorganization or restructuring plan. All three descriptors fit because the plan will involve monthly repayment plans based upon a reorganization of your debt, and a reorganization of your company and business affairs may be necessary to satisfy your creditors.

It’s important to note that a Chapter 11 repayment plan must have the approval of your creditors. You may propose a plan, but they can amend it and must ultimately approve it. This is because your plan asks them to modify due dates, interest rates, and other terms that will determine how you repay them going forward. While Chapter 11 is known for avoiding liquidation, sometimes downsizing and liquidating certain assets may be necessary to appease creditors.

In most cases, debt is discharged as soon as the debtor and creditors agree on a plan. This is not always the case, however, and some plans must be carried out in full before the debt is discharged.

Getting You Back on Your Feet

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Is Chapter 11 Right for My Company?

Chapter 11 bankruptcy typically makes headlines when a large corporation or organization files to restructure its hundreds of millions or even billions of dollars in debt. This may give the impression that Chapter 11 is only suitable for such companies, but that’s far from the truth.

In fact, many small businesses throughout the U.S. are exploring their options in Chapter 11 bankruptcy to offset economic distress caused by the COVID-19 pandemic. While this form of bankruptcy has always been available to small businesses, many more are turning to it seek relief from debt obligations that have become too difficult to handle.

Subchapter V for Small Business Debtors

While small businesses can get the debt relief they need from Chapter 11, Subchapter V provides those owing less than $2.75 million with a more streamlined process. A major reason why Subchapter V bankruptcies can be quicker is because they don’t require the debtor to seek their creditors’ approval of the repayment plan.

A tradeoff, however, is that debt is not discharged in a Subchapter V until the debtor makes all required payments to their creditors. This contrasts with a regular Chapter 11 bankruptcy, in which debt is often immediately discharged upon the plan’s approval.

Learn more about what we can do for you during a free initial consultation. Contact us online to schedule yours with us today.

Call Wesoloski Carlson, P.A. for Help!

If you want to explore debt relief options your company can use, reach out to our Chapter 11 bankruptcy attorney in Miami for help. Wesoloski Carlson, P.A. is here to support business owners experiencing financial hardship, especially if it was brought on by the COVID-19 pandemic.