Chapter 11 Bankruptcy
A Chapter 11 Business Bankruptcy is a legal process by which a business may declare bankruptcy, but continue to operate under the direction of a court-appointed trustee. This process is called “reorganization,” because the trustee reorganizes the business to be more efficient and to be able to pay the creditors of the business. The bankruptcy court may also reorganize how the business pays all or parts of its debts. Chapter 11 bankruptcy is usually sought and granted in the case where the value of the business is greater than the sum of its assets; in other words, the business has a significant amount of goodwill as a “going concern” which would be lost if the business were sold or liquidated.
In many cases, a business may re-emerge from Chapter 11 bankruptcy and continue to operate normally. In other cases, the reorganized business can be sold after some period of time.
Interested in learning more about or filing a Chapter 11 bankruptcy? Call Cook Law Firm today.
Mortgage paperwork mess: Next housing shock?
(CBS News) If there was a question about whether we’re headed for a second housing shock, that was settled last week with news that home prices have fallen a sixth consecutive month. Values are nearly back to levels of the Great Recession. One thing weighing on the economy is the huge number of foreclosed houses.