Chapter 11 Bankruptcy And Reorganization
In a Chapter 11 case, the Debtor retains his or her property and is referred to as a debtor in possession (or DIP.) DIP runs the day-to-day operations of the company while the parties work with a Bankruptcy Court to devise and complete a Plan. Once certain requirements are met (i.e., fairness among all creditors and priority of claims), creditors are permitted to vote on the Plan. If the Plan is ratified, then the Debtor continues to operate the business and simply pays its debt in accordance with the terms of the Plan. If a specified majority of the creditors do not vote for the plan, additional requirements may be necessary to confirm the Plan. In all cases, an important shield against creditors is the automatic stay. This powerful feature automatically halts all repossessions, foreclosures, evictions and other debt collection activity. Our dedicated Cleveland Chapter 11 Bankruptcy Attorney personally handles bankruptcy and debt related cases that comes into the firm.
The more complicated your situation, the more reason to consider hiring an experienced and knowledgeable attorney David M. Benson, who specializes Business Bankruptcy Law. Debt causes all type of problems don’t ignore, Contact us today for a free evaluation of your case. We can be reached online via email or by calling 216-232-2118.