Common Questions About Chapter 11
Chapter 11 Bankruptcy Legal Questions — Connecticut
You have questions. Perhaps you wonder if declaring bankruptcy will be the death knell of your business or at the very least, the beginning of the end. You may wonder if you ever can emerge from crippling debts.
At Attorney Joseph J. D'Agostino, Jr., LLC, we understand the apprehension that triggers such questions when you are considering declaring Chapter 11 bankruptcy. Bankruptcy lawyer Joseph D'Agostino works to answer your questions and provide you with legal advice that offers a hope for future viability. Contact us today to schedule an initial consultation.
Can I still run my own business?
Absolutely. As a business owner, your status is that of a debtor in possession. In acting as a fiduciary of the company for your creditors, you are still able to operate your business as the terms of your reorganization plans are determined and reviewed.
Do I have to lay my employees off?
While you are not required to lay off employees, part of the reorganization plan may make it necessary. This greatly depends upon the strategy you devise. Unfortunately, employees tend to be the most expensive part of business.
Will this affect my business in the future?
Filing for Chapter 11 bankruptcy should have only positive effects. By reorganizing your business plan and the payment of debt to secured and unsecured creditors, your company can emerge fitter, leaner and more able to compete and be profitable.
What will happen if it doesn’t work?
While in most cases a business reorganization under Chapter 11 will work, there are cases where it will not. But you have other alternatives: You may file for Chapter 7 bankruptcy, sell your business or explore the possibility of a merger with another company.
How long does it take?
There are both immediate and long-lasting effects of filing for Chapter 11 bankruptcy. The most significant aspect of filing is that it offers immediate debt relief which usually occurs within a week of filing. However, the overall process of business reorganization and debt repayment can take several months to several years. This period may seem like a long time, but when you consider the results — financial stability and structural stability — the positives far outweigh the negatives.
What does it cost?
Business reorganization under Chapter 11 should not affect your business’s cash flow; in fact, it should help. Most debtors find that by stopping creditors, their cash flow opens up resulting in greater stability.
Contact Attorney Joseph J. D'Agostino, Jr., LLC today for more information. Call our attorney toll-free at 203-377-9994.