Bankruptcy – Business and Individual Chapter 11 Reorganizations

Based in Denver, Colorado, the Law Offices of Kevin S. Neiman, pc represents virtually every constituency in Chapter 11 (reorganization) business and individual bankruptcy cases, including business and individual debtorssecuredundersecured,  and  unsecured  creditors;  administrative expense  claimants; and trustees, committees of unsecured creditors, and creditors on committees.

Why Choose the Law Offices of Kevin S. Neiman, pc

The Chapter 11 process is complicated, nuanced, and necessarily requires lawyers who have substantial Chapter 11 experience, knowledge, and abilities in order for clients to be meaningfully and adequately represented. Kevin has been counseling clients in Chapter 11 cases since 1996, initially in Miami, Florida, and now in Denver, Colorado, minutes from where the main Colorado bankruptcy courthouse is located.

Call 303.996.8637

Chapter 11 Reorganization

Chapter 11 of Title 11 of the U.S. Code (the Bankruptcy Code) is commonly known as the reorganization chapter for businesses and is one of the chapters that individuals can use to attempt to reorganize their debts and try to address certain types of other issues.

Like all filed bankruptcy cases, a Chapter 11 case begins with the filing of a petition for relief, whether voluntarily by the debtor or involuntarily by a petitioning creditor. Once filed and an order for relief is entered, the debtor becomes a “debtor-in-possession,” which means that the business or individual is in possession and control of its assets and operations. Typically, the debtor will likewise file, among other things, schedules setting forth its assets, liabilities, creditor information, and other related information, as well as a statement of financial affairs.

During the Chapter 11 process, creditors have many options to pursue if they are displeased with how the case is proceeding or otherwise want to further their interests. Examples include:

  • seeking to examine, and examining, the debtor and third parties under oath, in addition to obtaining documents
  • objecting to relief sought by the debtor
  • if the creditor is secured, seeking adequate protection and relief from stay
  • depending on the type of claims the creditor has, filing a proof of claim or administrative expense claim
  • attempting to appoint a Chapter 11 trustee or examiner
  • pursuing dismissal or conversion of the case

Chapter 11 for Small Businesses

Effective February 2020, Congress amended the Bankruptcy Code to streamline the process by which small business debtors reorganize and rehabilitate their financial affairs. The intent of these changes is to allow small business debtors to file bankruptcy in a timely, cost-effective manner, and hopefully allow them to remain in business, which not only benefits the owners, but employees, suppliers, customers, and others who rely on that business. Among other things, the amendments modify confirmation requirements, provide for the participation of a trustee, alter several administrative and procedural rules, and likewise affect certain individual debtor chapter 11 cases. In March 2020, Congress further amended the Bankruptcy Code by temporarily increasing the debt ceiling for small business debtors to $7.5 million, enabling many more potential debtors to qualify for Chapter 11 relief if they so choose.

Chapter 11 for Individuals

Chapter 11 bankruptcy reorganization was originally intended for businesses, but individuals are also eligible. Those who file usually have assets that they want to protect, thus making Chapter 7 liquidation not preferable. And Chapter 13 individual reorganization may not be available because the individual’s debts exceed that chapter’s eligibility limits.

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