Chapter 11 Bankruptcy Petitions for Businesses
Johnston, Moore & Thompson, a Huntsville Bankruptcy Law Firm
If you are a business owner facing rising debt or sinking income, you may be considering different types of business debt relief. If you have reached the point where you need reliable legal advice from a reputable local law firm, we encourage you to contact the Huntsville office of Johnston, Moore & Thompson.
For more than 70 years, Johnston, Moore & Thompson has offered quality advice and protective legal representation to businesses and individuals who need help with debt relief. We take pride in the fact that many of our current clients come to us via referrals from past or current clients of the firm, and we work hard to maintain our reputation for providing efficient and effective legal services.
Our law firm emphasizes the value of direct communication between lawyer and client. For that reason, bankruptcy clients of Johnston, Moore & Thompson work directly with attorney Thomas Williams, who currently leads our bankruptcy practice, for the duration of the process.
Businesses in Debt: Chapter 11 Bankruptcy and Alternatives
When you work with a bankruptcy lawyer at Johnston, Moore & Thompson, you will work with that attorney from start to finish. Your attorney will help you fully understand all the options open to you, help you choose which path to follow, file all necessary paperwork, appear on your behalf at any hearings, and stay at your side until the final step is complete.
Businesses facing unmanageable debt have three primary options to consider: Chapter 11 bankruptcy, Chapter 13 bankruptcy and informal negotiations with creditors. In almost all cases, Chapter 11 bankruptcy -- sometimes called business reorganization bankruptcy -- is the preferred option if informal negotiations fail. Advantages of Chapter 11 bankruptcy petitions include:
- The debt repayment plan required by a Chapter 11 bankruptcy petition does not have to show that all the business's disposable income is devoted to debt repayment. This is different from Chapter 13 repayment plans. If the business, through its attorney, can convince creditors to accept a more creative repayment plan that leaves the business with a larger operating budget, then the business owner may have a better chance to reestablish the business's profitability during the repayment period.
- Tax debts can be included in a Chapter 11 bankruptcy petition, whereas they cannot be included in a Chapter 13 filing. Unwieldy business tax debt is a major reason that businesses go into bankruptcy, especially businesses with incomes that fluctuate seasonally.
Contact Johnston, Moore & Thompson Regarding Chapter 11 Bankruptcy
If you have questions about Chapter 11 bankruptcy or other debt relief options for Alabama businesses, call Johnston, Moore & Thompson toll free at 888.636.3759 to schedule a private consultation with an insightful Alabama bankruptcy lawyer.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.