Ellicott City, MD Chapter 11 Bankruptcy Lawyer

Dependable Attorneys Guiding Business Owners Through Chapter 11 Bankruptcy in Ellicott City, Maryland

Chapter 11 bankruptcy is typically used by businesses, but it may also be an option for individuals with a high net worth who have substantial debts. Like Chapter 13, Chapter 11 bankruptcy involves reorganizing your debts and creating a repayment plan. However, Chapter 11 bankruptcy has a few key differences.

In a Chapter 13 bankruptcy, you will have less control over how much the court will order you to pay towards your debt each month or how long the repayment plan will last. If you use Chapter 11, you and your attorney can propose a repayment plan that is realistic for you. There is a lot more flexibility in a Chapter 11 bankruptcy, making it a good choice for mid-sized or large businesses that are fighting to stay open. It may also be a good choice for people with significant assets who want to avoid the liquidation of their assets and have more control over their repayment plan.

The experienced attorneys at the Law Offices of Marc A. Ominsky, LLC can help you decide if Chapter 11 bankruptcy is the right choice for you or your company. Our knowledgeable lawyers have helped numerous clients through Chapter 11 bankruptcy in our more than 50 combined years of practice. While Chapter 11 bankruptcy can be complicated, we understand the legal requirements and the procedures that will be followed. We are well-prepared to guide you through every step of the process. Our lawyers are hands-on in bankruptcy cases, and we are ready to help you in real time when you reach out to us.

When to Choose Chapter 11 Bankruptcy for a Business

Larger businesses are more likely to benefit from choosing Chapter 11. This may be the right option for your business if:

• You Do Not Qualify for Chapter 13: You will usually only be able to use Chapter 13 bankruptcy if your business is a sole proprietorship. Other types of companies that want to restructure their debts and keep operating may need to use Chapter 11.
• You Prioritize Staying Open: The flexibility involved in a Chapter 11 bankruptcy makes it attractive to businesses that are determined to stay open. You can keep control of your company's assets during the bankruptcy process. If your company is experiencing a setback that you believe is temporary, Chapter 11 may enable you to save your company.
• You Qualify for Subchapter V: Small businesses may qualify for a streamlined version of Chapter 11 bankruptcy under Subchapter V. This is sometimes referred to as Chapter 5 bankruptcy. If you qualify for the streamlined process, bankruptcy may be less costly, and you may be able to resolve your case more quickly.

Can an Individual Use Chapter 11 Bankruptcy?

An individual can use Chapter 11 bankruptcy, but it is likely only the right choice if you have a high net worth and large debts. Chapter 11 can be just as complicated for an individual as it is for a business, but it does give you a lot more input during the proceedings. Your attorney can help develop a repayment plan to present to your creditors and negotiate on your behalf if there are any objections. Our attorneys are skilled negotiators, and we will advocate for a repayment plan that meets your needs.

Another benefit of Chapter 11 for individuals is that you can maintain control of your own assets during the bankruptcy process. In a Chapter 13 bankruptcy, the court will appoint a trustee who will have broad control over your financial affairs. In a Chapter 11 bankruptcy, you can become a debtor-in-possession, acting as your own trustee.

Chapters 11 and 13 are more appealing to high-net-worth individuals because they do not involve liquidation like Chapter 7. Liquidation may not be bothersome for people with small estates, since most of their assets are likely exempt. However, wealthier people may lose valuable assets to liquidation, which could lead to a drastic change in lifestyle. Chapter 11, on the other hand, would only limit a person's future spending.

Contact Our Ellicott City, Maryland Chapter 11 Bankruptcy Attorneys

The Law Offices of Marc A. Ominsky, LLC is committed to helping businesses and individuals find relief from debt through Chapter 11 bankruptcy. Our highly experienced Ellicott City, MD bankruptcy lawyers will do all we can to help you save your business or preserve your personal assets. Contact us at 443-539-8712 for a complimentary consultation.