Chapter 11 bankruptcy is commonly referred to as a reorganization, pursuant to which a debtor, which may be an individual or a business, may file for relief under the U.S. Bankruptcy Code. Individuals who do not qualify for Chapter 13 bankruptcy due to debt limitations, typically file for relief under Chapter 11. A Chapter 11 reorganization permits debtors to reorganize their debt obligations and pay their debts over time. This is especially attractive to businesses which may continue to operate while repaying their debts. Chapter 11 bankruptcies can vary greatly in size and complexity so its important that you speak with your local, Houston qualified bankruptcy attorneys at Tran Singh LLP who specialize in debt relief services and are experienced in Chapter 11 reorganizations for businesses and individuals.
A Chapter 11 bankruptcy proceeding begins when a petition is filed with the bankruptcy court serving the area where the business debtor is organized or has its principal place of business or principal assets. Customarily, your case will be held at the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, which is located in Downtown Houston and serves the following counties: Austin, Brazos, Colorado, Fayette, Fort Bend, Grimes, Harris, Madison, Montgomery, San Jacinto, Walker, Waller and Wharton. The court is required to charge a $1,167 case filing fee and a $571 miscellaneous administrative fee. If the debtor is an individual (or husband and wife), there are additional filing requirements, including, among other things, receiving credit counseling from an approved credit counseling agency.
Upon the filing of the Chapter 11 petition an automatic stay is granted, which provides a period of time in which all judgments, collection activities, foreclosures and repossessions of property are suspended and may not be pursued by creditors on any debt or claim that arose before the filing of the bankruptcy petition. Following the filing of the Chapter 11 petition, there are various additional schedules and statements which are required to be filed with the court. The debtor automatically assumes an additional identity as the "debtor in possession" upon the filing of a voluntary petition for relief under Chapter 11, which term refers to a debtor that keeps possession and control of its assets while undergoing a reorganization under Chapter 11 without the appointment of a case trustee.
Generally, a written disclosure statement and a plan of reorganization must be filed with the court. The disclosure statement sets forth information concerning the assets, liabilities and business affairs of the debtor sufficient to enable a creditor to make an informed decision about the debtor's plan of reorganization. The plan of reorganization must include a classification of claims and must specify how each class of claims will be treated under the plan. Creditors whose claims are "impaired" (i.e., those whose contractural rights are to be modified or who will be paid less than the full value of their claims under the plan), vote on the plan by ballot. After the disclosure statement is approved by the court and the ballots are collected and tallied, the court will conduct a confirmation hearing to determine whether to confirm the plan. Although the preparation, confirmation and implementation of a plan of reorganization is at the heart of a Chapter 11 case, other issues may arise that must be addressed by the debtor in possession. Your experienced attorneys at Tran Singh LLP will guide you through any issues that may arise during your Chapter 11 proceeding.
The debtor in possession in a Chapter 11 case has many of the powers and duties of a trustee, including the right, with the court's approval, to employ attorneys, accountants, appraisers, auctioneers, or other professional persons to assist the debtor during its bankruptcy case. The U.S. Trustee is responsible for monitoring the compliance of the debtor in possession with reporting requirements. Additionally, the U.S. Trustee monitors applications for compensation and reimbursement by professionals, plan and disclosure statements filed with the court and creditors' committees. The U.S. Trustee also conducts a meeting of the creditors, often referred to as the 341 Meeting. The debtor in possession must pay a quarterly fee to the U.S. Trustee for each quarter of a year until the Chapter 11 case is converted or dismissed. The amount of the fee, which may range from $325 to $30,000 depends on the amount of the debtor's disbursements during each quarter.
A key factor in the appeal of a Chapter 11 bankruptcy is the ability of a business debtor to continue its day-to-day operations. If your business is facing financial difficulties and struggling to pay debt obligations, the answer may be a Chapter 11 bankruptcy to maintain viability while reorganizing debt obligations, depending on the particular facts and circumstances of your situation. If you are an individual and Chapter 7 and Chapter 13 are not feasible options for you, Chapter 11 may provide an avenue for relief.
We encourage you to reach out to your local, Houston bankruptcy attorneys at Tran Singh LLP, specializing in debt relief services and have experience in Chapter 11 cases and the nuances and complexities involved, and are equipped to guide you through the bankruptcy process and advise you on the path to achieve your goals.
A Chapter 11 bankruptcy proceeding begins when a petition is filed with the bankruptcy court serving the area where the business debtor is organized or has its principal place of business or principal assets. Customarily, your case will be held at the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, which is located in Downtown Houston and serves the following counties: Austin, Brazos, Colorado, Fayette, Fort Bend, Grimes, Harris, Madison, Montgomery, San Jacinto, Walker, Waller and Wharton. The court is required to charge a $1,167 case filing fee and a $571 miscellaneous administrative fee. If the debtor is an individual (or husband and wife), there are additional filing requirements, including, among other things, receiving credit counseling from an approved credit counseling agency.
Upon the filing of the Chapter 11 petition an automatic stay is granted, which provides a period of time in which all judgments, collection activities, foreclosures and repossessions of property are suspended and may not be pursued by creditors on any debt or claim that arose before the filing of the bankruptcy petition. Following the filing of the Chapter 11 petition, there are various additional schedules and statements which are required to be filed with the court. The debtor automatically assumes an additional identity as the "debtor in possession" upon the filing of a voluntary petition for relief under Chapter 11, which term refers to a debtor that keeps possession and control of its assets while undergoing a reorganization under Chapter 11 without the appointment of a case trustee.
Generally, a written disclosure statement and a plan of reorganization must be filed with the court. The disclosure statement sets forth information concerning the assets, liabilities and business affairs of the debtor sufficient to enable a creditor to make an informed decision about the debtor's plan of reorganization. The plan of reorganization must include a classification of claims and must specify how each class of claims will be treated under the plan. Creditors whose claims are "impaired" (i.e., those whose contractural rights are to be modified or who will be paid less than the full value of their claims under the plan), vote on the plan by ballot. After the disclosure statement is approved by the court and the ballots are collected and tallied, the court will conduct a confirmation hearing to determine whether to confirm the plan. Although the preparation, confirmation and implementation of a plan of reorganization is at the heart of a Chapter 11 case, other issues may arise that must be addressed by the debtor in possession. Your experienced attorneys at Tran Singh LLP will guide you through any issues that may arise during your Chapter 11 proceeding.
The debtor in possession in a Chapter 11 case has many of the powers and duties of a trustee, including the right, with the court's approval, to employ attorneys, accountants, appraisers, auctioneers, or other professional persons to assist the debtor during its bankruptcy case. The U.S. Trustee is responsible for monitoring the compliance of the debtor in possession with reporting requirements. Additionally, the U.S. Trustee monitors applications for compensation and reimbursement by professionals, plan and disclosure statements filed with the court and creditors' committees. The U.S. Trustee also conducts a meeting of the creditors, often referred to as the 341 Meeting. The debtor in possession must pay a quarterly fee to the U.S. Trustee for each quarter of a year until the Chapter 11 case is converted or dismissed. The amount of the fee, which may range from $325 to $30,000 depends on the amount of the debtor's disbursements during each quarter.
A key factor in the appeal of a Chapter 11 bankruptcy is the ability of a business debtor to continue its day-to-day operations. If your business is facing financial difficulties and struggling to pay debt obligations, the answer may be a Chapter 11 bankruptcy to maintain viability while reorganizing debt obligations, depending on the particular facts and circumstances of your situation. If you are an individual and Chapter 7 and Chapter 13 are not feasible options for you, Chapter 11 may provide an avenue for relief.
We encourage you to reach out to your local, Houston bankruptcy attorneys at Tran Singh LLP, specializing in debt relief services and have experience in Chapter 11 cases and the nuances and complexities involved, and are equipped to guide you through the bankruptcy process and advise you on the path to achieve your goals.
Questions?
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Click below to navigate to the Consumer Bankruptcy Consultation Checklist, a guide prepared with you in mind, and summarizes the information and documentation you will need to provide for your case.
Click below to navigate to the Consumer Bankruptcy Consultation Checklist, a guide prepared with you in mind, and summarizes the information and documentation you will need to provide for your case.
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We encourage you to discover the valuable resources available to you by navigating to the pages through the link provided below.
We encourage you to discover the valuable resources available to you by navigating to the pages through the link provided below.
TRAN SINGH LLP
2502 La Branch Street | Houston, Texas 77004 | Phone: (832) 975-7300 | Fax: (832) 975-7301 | Email: [email protected]
DISCLAIMER AND LEGAL NOTICE
We are a debt relief agency. We help people file for relief under the Bankruptcy Code.
2502 La Branch Street | Houston, Texas 77004 | Phone: (832) 975-7300 | Fax: (832) 975-7301 | Email: [email protected]
DISCLAIMER AND LEGAL NOTICE
We are a debt relief agency. We help people file for relief under the Bankruptcy Code.