DeLoache Law Office 25+ Years of Excellence Helping Arkansas Families and Businesses Alike

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.

Helping Small Businesses Throughout Arkansas

Because no two businesses are alike, Chapter 11 provides a means of reorganization and repayment for all commercial entities. With the right legal counsel, many can easily find financial stability without having to drastically downsize their business.

Learn more about Chapter 11 bankruptcy by contacting DeLoache Law Office today.

We proudly serve the areas of Jonesboro, West Memphis, Paragould, Blytheville and surrounding cities in all bankruptcy matters.