Springfield Chapter 11 Bankruptcy Lawyer

Work With An Experienced Local Attorney Near You

Chapter 11 bankruptcy is a crucial option for businesses in Springfield, MA, facing overwhelming financial obligations. While individuals and couples can also file under this chapter, it primarily serves corporations, limited liability companies, and partnerships. This type of bankruptcy is often referred to as “reorganization” bankruptcy, as it allows businesses to restructure their debts and operations while continuing to operate.

If you believe that filing for Chapter 11 is the right choice for your Springfield business, it’s essential to seek guidance from an experienced Chapter 11 lawyer. At Morrison & Associates, PC, we are dedicated to helping local businesses navigate the complexities of bankruptcy law.

Why Choose Morrison & Associates, PC for Your Chapter 11 Needs?

As a Springfield Chapter 11 lawyer, I, Attorney Troy Morrison, have successfully managed thousands of cases throughout Massachusetts. With over 20 years of focused experience in bankruptcy law, I can help you determine whether Chapter 7, Chapter 13, or Chapter 11 is the best course of action for your unique situation.

Contact Morrison & Associates, PC at (413) 475-9882 or fill out our online request form to schedule a free initial consultation with a knowledgeable Chapter 11 bankruptcy attorney.

A Look Into How Chapter 11 Works

Chapter 11 bankruptcy is known for being one of the most complex and lengthy forms of bankruptcy. The process can take several months to years, depending on the specifics of your case. While a bankruptcy trustee may be appointed in cases of severe mismanagement or fraud, this is not common.

Upon filing, an automatic stay is enacted, preventing creditors from demanding payment. Your business will continue to operate while you develop a reorganization plan within a designated timeframe.

Components of a Chapter 11 Bankruptcy Plan

A Chapter 11 plan must outline how your Springfield business intends to repay its creditors throughout the bankruptcy process. Typically, these plans span three to five years and must be feasible to gain approval from both the court and creditors.

Creditors involved may include:

• Secured creditors with collateral backing their loans
• Unsecured creditors without collateral
• Equity security holders, such as shareholders or partners

Timeline for Chapter 11 Bankruptcy

The duration of a Chapter 11 bankruptcy case can vary significantly. While some cases may conclude within a few months, the average timeframe is between six months to two years.

More complex cases may extend beyond five years, influenced by various factors such as:

• Claims reconciliation
• Creditor prioritization
• The debtor’s Plan of Reorganization
• Court confirmation of the Plan
• Claims resolution

Key Stages In Chapter 11 Bankruptcy

The Chapter 11 process can be divided into two main phases: pre-confirmation and post-confirmation. The transition between these phases occurs when the bankruptcy court approves the Plan of Reorganization.

During the pre-confirmation phase, court proceedings and negotiations take place to develop and approve the plan. In the post-confirmation phase, the debtor must implement the restructuring plan and resolve claims with creditors.

Important Deadlines and Subchapter V

When filing for Chapter 11 in Springfield, you have four months from the filing date to propose a Plan of Reorganization, which can be extended for up to 18 months. However, small businesses may benefit from Subchapter V of Chapter 11, which streamlines the process with shorter deadlines and greater flexibility in negotiations.

Keep in mind that once Chapter 11 concludes, it will remain on your credit report for seven years, which may impact your ability to start a new business in Massachusetts in the future.

Get Expert Guidance from a Springfield Chapter 11 Bankruptcy Attorney

Given the intricacies and lengthy nature of Chapter 11, it’s vital to have a skilled attorney by your side. At Morrison & Associates, PC, we are committed to working diligently to help you achieve your debt relief goals and pave the way for a fresh start.

Discover how Morrison & Associates, PC can assist you with your Chapter 11 bankruptcy needs. Call } or reach out to us online to schedule your consultation.