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We are a debt relief agency. We help people file for relief under the bankruptcy code.

Monroe Chapter 11 Bankruptcy

A Chapter 11 bankruptcy in Monroe, Louisiana, is a kind of business bankruptcy that allows a company to continue operating while it pays off debts. In theory, this allows profitable aspects of the business to continue generating revenue to fund operations and repay creditors over time. In many cases, this makes more financial sense for everyone involved then simply selling off the entire business.

Sometimes a Chapter 11 bankruptcy in Monroe is a strategic move, letting a business reorganize for political reasons in addition to balancing books.

Remember, only an experienced Monroe bankruptcy attorney can tell you if a Monroe Chapter 11 is the best option for your business.

How a Monroe Chapter 11 bankruptcy works

Chapter 11 bankruptcies may be filed for by the following:

  • Corporations
  • Sole proprietorships
  • Partnerships

While a business is owned by its stockholders, the assets of those stockholders are not at risk in a Chapter 11 bankruptcy. Only the assets of the business itself are affected. When a bankruptcy case involves a sole proprietorship, however, both the business and personal assets of the owners are at stake, and partnership bankruptcy cases may also involve the personal assets of partners to pay creditors. Partners may also need to file for personal bankruptcy protection.

A Chapter 11 bankruptcy does not limit the amount of involved debt, as a Chapter 13 does.

Chapter 11 bankruptcies define a plan through which debts are to be repaid. This plan must be approved by the creditors, whom the plan divides into classes based on their specific claims. If creditors do not approve the plan, the debtor may still pass certain statutory tests and force the approval of the plan.

Chapter 11 is very flexible, which generally makes it more expensive for the debtor.

In rare cases, individuals can file for Chapter 11 bankruptcy. However, Chapter 7 or Chapter 13 bankruptcies are much more common for individuals.

Some large, publicly vested companies legally cannot file for Chapter 11 bankruptcy. These include:

  • Insurance companies
  • Utilities
  • Certain conglomerates

Contact us for help with Chapter 11 in Monroe

Debt is a fact of life, and when it becomes unmanageable you have nothing to be ashamed of.

Attorney E. Orum Young will help you work out your debts confidentially. If you need Monroe bankruptcy advice, please contact us, the bankruptcy law firm of E. Orum Young Law Offices.