Chapter 11 Bankruptcy Attorney
Reorganization, Repayment & Release from Debt
Serving Jonesboro & All of Arkansas
If the last fifteen years have demonstrated anything to us about our economy,
it is that financial hardships are not limited to individuals and households.
In fact, many businesses both large and small have found themselves in
the position of apparent hopelessness.
In the interest of providing reasonable options for bankruptcy to all persons
and entities, Chapter 11 of the federal Bankruptcy code includes an option
that is most commonly used by businesses and corporations whereby they
can reconstruct their business finances in an effort to repay all or part
of their debt. Chapter 11 also allows the debtor to sell some or all of
their assets for the benefit of the creditors as well.
Chapter 11 bankruptcy has been used by some large corporations as well
as small businesses. The chapter provides that any size business must
meet certain requirements regarding debt owed, income, and more to reorganize
finances for bankruptcy.
Small Business Bankruptcy in Arkansas
Small businesses, however, do receive some special provisions that can
potentially reduce bankruptcy expenses and expedite the process.
In order to qualify as a "small business case" under Chapter
11, the person or entity must:
- Be currently involved in commercial activities
- Owe no more than $2,490,925 in total claims
As a small business, debtors may be exempt from steps in the process that
can be costly and time consuming, including creditors' committees,
plan deadlines, disclosure statements and additional trustee oversight
and reporting duties.