In today’s tough economy, it is not only families and individuals that are struggling with debt. Businesses are also having trouble keeping control of their finances. There are a number of reasons why your business could not be profiting as much as you had hoped. You may have calculated the costs incorrectly; the rent in your building may have gone up; your customers may not be buying as much as you would hope; your stock may have increased in price. Whatever the reason or reasons for your financial problem, there is an alternative to closing your shop and admitting defeat. This alternative is called Chapter 11 bankruptcy.

Similar to Chapter 13 bankruptcy, Chapter 11 bankruptcy is considered a ‘reorganization’ of your debts rather than total liquidation. Like Chapter 13 bankruptcy, Chapter 11 bankruptcy allows the debtor to usually keep his property and value. Chapter 11 bankruptcy, however, is usually reserved for businesses or those with an extreme amount of debt.

Who Can File for Chapter 11 Bankruptcy?

Chapter 11 bankruptcy is for any business, regardless of how large or how small, how new or how old. If you are unable to keep ahead of your business debt, then Chapter 11 bankruptcy may the solution you are looking for.

In most instances, Chapter 11 bankruptcy is restricted to the following:

• Businesses
• Sole proprietorship
• Partnerships
• Corporations
• Individuals who do not qualify for Chapter 13 bankruptcy with unsecured debt higher than $336,900 or secured debt higher than $1,010,650.

For those who do not want to file for Chapter 7 bankruptcy, Chapter 11 offers an excellent alternative to get your business back on track without selling everything. Most businesses that file a Chapter 7 bankruptcy will cease to operate; with Chapter 11 bankruptcy, this is not the case. You can continue to operate but will be put under a reorganization debt management plan to ensure your business is heading in the right direction.
Chapter 11 bankruptcy will allow you to keep your business but put you on a payment plan to pay back your debts. The bankruptcy court will order all creditors to stop harassing your business and you will be able to operate without any hassles.

Getting Help from a Chapter 11 Bankruptcy Attorney

When it comes to Chapter 11 bankruptcy, your first step is to contact a Minneapolis Chapter 11 bankruptcy attorney to determine if this is the right move for your business. You will need to go over your finances and any related information which may include the following:

• Prior history and cause of the filing
• Assets and liabilities
• Income and expenses
• Treatment of creditors
• Projection of earnings
• Liquidation analysis

Once a Chapter 11 bankruptcy lawyer has a clear picture of your business portfolio, he will be able to help you out with the filing and the management plan. A Chapter 11 bankruptcy lawyer will be by your side through the court hearing and can ensure that the management plan works for your business needs. Contact our Minnesota bankruptcy team today for a free consultation. We at the Law Offices of Heimerl & Lammers have nearly 30 years experience in Chapter 11 filings and can help ensure that your business stays afloat during these tough economic times.

Heimerl & Lammers practices in all eighty seven counties of Minnesota including, Hennepin County, Ramsey County, Scott County, Carver County, Washington County, Anoka County, Wright County, Sherburne County, Chisago County, Isanti County, Stearns County, Dakota County, Cass County, Blue Earth County, Olmsted County, Sibley County and St. Louis County.

We represent Minnesota Bankruptcy Law clients throughout the Twin Cities including Minneapolis, Champlin, Brooklyn Park, Brooklyn Center, Eden Prairie, Edina, Excelsior, Hopkins, Long Lake, Lino Lakes, Maple Plain, Minnetonka, Monticello, Mound, Osseo, Otsego, Rogers, Saint Bonifacius, Saint Paul, St Paul, Spring Park, St Louis Park, Wayzata, Woodbury, White Bear Lake, Plymouth, Maple Grove, Eagan, Eden Prairie, Burnsville, Bloomington, Buffalo and throughout Minnesota.

Disclaimer: We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code.