Chapter 11 business bankruptcy is on the rise right now, mostly due to the COVID-19 crisis and the economic hardships that it is causing for businesses around the world. What exactly is Chapter 11 bankruptcy?
Named after the United States bankruptcy code 11, Chapter 11 bankruptcy is a type of bankruptcy that typically involves the reorganization of a debtor’s debts, assets and business affairs. Businesses usually file Chapter 11 when they need time to restructure debts. Chapter 11 bankruptcy is one of the more complex types of bankruptcy cases and requires an expensive bankruptcy proceeding, so businesses need to carefully consider Chapter 11 reorganization. That being said, there are a few Chapter 11 bankruptcy statistics you should know.
Here are some Chapter 11 bankruptcy statistics that you should know during this crisis:
Luckily, bankruptcy attorneys like Van Horn Law Group are available to help you file Chapter 11 bankruptcy if that’s the route that you choose to take during the COVID-19 crisis. It can definitely be confusing to determine which bankruptcy filing is best for you, but Van Horn Law Group will help you figure out the best financial option for you.
Businesses that choose to file for Chapter 7 typically need to close their doors, while those that file for a Chapter 11 bankruptcy can typically remain open and simply discharge their debts. Chapter 7 bankruptcy means the liquidation of particular assets, forgiveness of assets and payments going first to secured creditors, while Chapter 11 business bankruptcy means restructuring debts to make repayment and forgiveness of debts only after repayment terms are satisfied.
If you want more information about filing for bankruptcy, don’t hesitate to contact Van Horn Law Group today!