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Las Vegas Divorce Attorney > Las Vegas Bankruptcy Attorney > Las Vegas Chapter 11 Bankruptcy Attorney

Las Vegas Chapter 11 Bankruptcy Attorney

 If your business is struggling to manage debt, you may be thinking about filing for Chapter 11 bankruptcy. This is the type of reorganization bankruptcy that businesses use, although certain individuals with too much debt to qualify for Chapter 13 bankruptcy—which is also a type of reorganization bankruptcy for consumers—may file under Chapter 13. If you file for Chapter 11 bankruptcy, it can be possible to develop a repayment plan to manage your debts while keeping your business doors open. An experienced Las Vegas Chapter 11 bankruptcy attorney can speak with your today about your bankruptcy options. 

What is Chapter 11 Bankruptcy?

Chapter 11 bankruptcy is a type of reorganization bankruptcy that allows businesses (and sometimes individuals, depending upon the circumstances) to restructure debts and to develop a repayment plan. Most Chapter 11 repayment plans last for a period of between six months and two years. Over that period of the repayment plan, the debtor makes payments that go to creditors, and then the remaining eligible debts are discharged once the repayment plan period is over.

Businesses can benefit immensely from Chapter 11 bankruptcy because it can allow the business to manage debts while remaining open. Many different sizes of businesses can rely on this type of bankruptcy, from a single small business to a large corporation. While larger corporations with multiple storefronts may need to close some of their storefronts as a result of the Chapter 11 bankruptcy, one of the primary benefits of this type of bankruptcy is that the business can remain operational. A business Chapter 7 bankruptcy is much different, where the business assets must be liquidated and the business closes. To be eligible for Chapter 11 bankruptcy, a business will typically need to be able to show that it has the capacity to earn revenue and to make monthly payments according to the terms of the repayment plan.

Chapter 11 vs. Chapter 13 Bankruptcy in Las Vegas

Chapter 11 bankruptcy is largely used by businesses that are struggling with debt. However, in some cases, an individual or consumer will also need to file for Chapter 11 bankruptcy because they do not qualify for Chapter 13 bankruptcy. To be clear, Chapter 11 and Chapter 13 are both types of reorganization bankruptcies, but a debtor can only be eligible for Chapter 13 bankruptcy if they have debts below a certain amount. As of April 1, 2019, a person could not be eligible for Chapter 13 bankruptcy if they had debts of the following amounts:

  • Secured debts of more than $1,257,850; and/or
  • Unsecured debts of more than $419,275.

Chapter 11 does not have debt limits, but the filing fees are significantly higher for consumers who need to file for bankruptcy.

Learn More from a Chapter 11 Bankruptcy Attorney in Las Vegas

If your business is struggling to stay afloat because of debt, it may be possible to seek protection by filing for Chapter 11 bankruptcy. This type of bankruptcy can allow you to keep your business open while working out a repayment plan through which to repay creditors. By restructuring your debt, you may be able to get your business back on strong footing. An experienced Las Vegas Chapter 11 bankruptcy attorney at our firm can assist you. Contact Ghandi Deeter Blackham Law Offices for more information.

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