Chapter 11

Chapter 11 Bankruptcy Lawyer in Yuma

Most bankruptcy filings in the United States use Chapter 7 and Chapter 13. While these chapters are the most straightforward, not everyone will qualify. Chapter 7, for example, has strict income requirements for individuals. Chapter 13 has a debt threshold and is only available to individuals (including sole proprietors).

Even if you qualify for one of these chapters, it may not be the most appropriate solution for your situation.

Chapter 11 may be a better option for you if:

  • You are filing as an individual, and your debt is too high to qualify for Chapter 13
  • You are filing as an individual, and your income is too high to qualify for Chapter 7, or you would lose your high-value assets through the liquidation process
  • You are filing as a business entity, but you want to remain in control of your business instead of liquidating it through Chapter 7
  • You have a steady source of income or revenue that allows you to make regular payments through a reorganization plan

Ultimately, determining whether Chapter 11 is the best possible strategy can be a challenge without qualified support. At the Law Office of Phil Hineman, P.C., we have filed more than 10,000 bankruptcy cases in our 30+ years of experience. We have a thorough understanding of the Bankruptcy Code, and we stay abreast of legislative changes that impact our clients’ cases.

Furthermore, we have extensive experience filing bankruptcy appeals, so you can trust us to do everything we can to obtain a favorable resolution on your behalf. If you are looking for professionals who know how to work U.S. bankruptcy laws to your advantage, we are the team you need.

Ready to learn more about filing Chapter 11 bankruptcy in Yuma? Give us a call at (928) 224-3230 or contact us online to begin.

How Does Chapter 11 Work?

Unlike Chapter 7, Chapter 11 is not a straight liquidation and discharge of debt. However, you may be able to discharge qualifying debts after you complete a repayment plan similar to what you would establish in Chapter 13. The Chapter 11 plan may involve liquidation of assets, but many filers can keep their property while repaying most of their debt and obtaining a discharge.

Typically, creditors are heavily involved in these cases, which is partially why the process can take anywhere from several months to several years. Creditors can vote to deny repayment plans and have the power to propose their own. This is why hiring an attorney to advocate for your best interests is critical for your success.

The biggest advantage of Chapter 11 is that it allows many business owners to continue to own and run their businesses during and after the Chapter 11 process. The proceeding can be highly complex, however, and you will greatly benefit from qualified legal guidance.

Who Can File Chapter 11?

The most common types of Chapter 11 filers are corporations, LLCs, and partnerships, but it is available to both individuals and businesses. Individuals with high net-worth may use Chapter 11 if they have too much debt to qualify for Chapter 13, their income is too high to qualify for Chapter 7, or they would lose their assets in Chapter 7.

Chapter 11 for Small Businesses

Does your company owe less than $2,725,625*? You may qualify as a small business, which can allow you to file under Subchapter V of Chapter 11, a new subchapter created by the Small Business Reorganization Act (SBRA). This subchapter became available in February of 2020, giving small businesses exclusive access to several substantial benefits.

Congress passed the SBRA because small businesses have not been able to successfully file through Chapter 11 like their corporate counterparts. As a result, they had to liquidate their companies through Chapter 7 because Chapter 13 reorganization is only available to individual filers. If you qualify for Subchapter V, we may be able to help you restructure, repay, and reduce your debt without going out of business.

*COVID-19 CARES ACT UPDATE: Until March of 2021, you can file under Subchapter V if you owe no more than $7,500,000.

Call (928) 224-3230 or contact us online to schedule your free initial consultation. We can help you protect what matters most while freeing you from the burden of unmanageable debt.

Let’s Get Started on Your Bankruptcy Process Today

The Law Office of Phil Hineman, P.C. focuses on results without compromising compassion. When you bring your case to our firm, you will experience a personal touch you won’t find at larger firms, but you will also benefit from decades of experience and a steadfast dedication to high-quality representation. When your financial future is on the line, why settle for anything less than the best?

  • Mr. Hineman represented me in my response to a petition for relocation.

    “My experience was very positive and I found him and his associates to be well-prepared and knowledgeable in helping me to be successful in keeping my family here in Arizona.”

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  • I highly recommend them if you need to file bankruptcy.

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    - Bob R.
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    “He kept us updated with everything we needed to get through our bankruptcy.”

    - Walter H.
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    “He helped me in my case, lowered my punishment by the judge, and got rid of a few charges like how I asked.”

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  • A really good attorney.

    “When I acquired Phil Hineman to help me with custody of my child I was not allowed to see him and right away he got me visitations.”

    - Gerardo M.
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