Practice Overview

Chapter 11 Bankruptcy

Milford, Connecticut Chapter 11 Bankruptcy Attorneys

Under the terms of Chapter 11 bankruptcy, a company can remain in control of its assets, maintain day-to-day business operations, and restructure its debt in order to avoid receivership and liquidation. Businesses are required to propose a plan that restructures company debt into manageable, monthly payments. Once a debt reorganization plan is proposed, creditors must review it to determine if it is acceptable to them.

In general, creditors accept repayment plans when they believe they stand to recover more money under them than if they liquidated a company's assets. At the law office of Harlow, Adams & Friedman, our lawyers work closely with businesses filing for Chapter 11 bankruptcy. We prepare and file all necessary paperwork while working with creditors to ensure a repayment plan is acceptable to them.

If your company is out of formula or facing mounting bills, contact Chapter 11 bankruptcy attorneys at the law office of Harlow, Adams & Friedman today to learn how we can help you regain your financial footing.

Debt Reorganization Under the Terms of Chapter 11 Bankruptcy

As a general rule, a company's owners continue to manage the business through Chapter 11. Under the terms of Chapter 11, debt on leases and contracts can be eliminated while a company can enter into negotiations with creditors to maintain daily business operations, save jobs, and reorganize debt. Assets can be sold only upon approval by the court. In this way, Chapter 11 provides businesses with important protections from creditors who may try to force a company into receivership. Your business continues as usual.

Working With Creditors in Chapter 11 Bankruptcy

Under the terms of Chapter 11, creditors must accept a proposed debt reorganization before a company can exit bankruptcy. Usually, creditors are willing to accept a plan if they believe they will recover more under its proposed terms than forcing a company into receivership. For this reason, it's essential that a company provide a realistic pay schedule given its assets and expected cash flow. Failure to adhere to the terms of a proposed plan could force your business into liquidation.

Contact the Chapter 11 Bankruptcy Attorneys at Harlow, Adams & Friedman

It's important to take action to protect your company before creditors attempt to liquidate your assets. If your company is experiencing financial difficulty, contact Harlow, Adams & Friedman today to schedule an appointment and see if Chapter 11 makes sense for you.

At Harlow, Adams & Friedman, P.C., we represent clients in Milford and throughout Connecticut, including the communities of Bridgeport, New Haven, Stamford, Norwalk, Danbury, Stratford, Shelton, West Haven, Orange, Trumbull, Monroe and Derby; and other locations in Fairfield County and New Haven County.