Southfield Chapter 11 Bankruptcy Lawyer

One of the Best Bankruptcy Attorneys in Southfield, MI

Office Location

23843 Joy Rd
Dearborn Heights, MI 48127

Monday: 9 AM-5:15 PM
Tuesday: 9 AM-5:15 PM
Wednesday: 9 AM-5:15 PM
Thursday: 9 AM-5:15 PM
Friday: 9 AM-5:15 PM
Saturday: 9 AM-12 PM
Sunday: Closed

We offer late night appointments as late as 6:30 by phone or in person Mon-Thur.

Highly Recommended

Get a Free Consultation

Southfield Chapter 11 Bankruptcy Attorney

Our Chapter 11 bankruptcy attorneys in Southfield offer strategic solutions to help businesses and individuals regain financial stability.

Whether you’re a small business owner looking to restructure debt or an individual with significant financial obligations, our experienced attorneys provide personalized legal guidance tailored to your unique situation.

We handle every aspect of the Chapter 11 process. From filing petitions to negotiating with creditors and developing a feasible repayment plan. We help you maintain control of your assets while working toward a sustainable financial future.

With a deep understanding of Michigan bankruptcy laws and a commitment to protecting your interests, our top-rated Southfield Chapter 11 attorneys are dedicated to finding the best path forward for you or your business.

Contact Frego & Associates today for a free consultation (online consultation can be arranged) at 1-800-646-0075 and take the first step toward financial recovery.

Understanding Southfield Chapter 11 Bankruptcy

Chapter 11 bankruptcy is a legal process that allows businesses and high-debt individuals in Southfield to restructure their financial obligations while maintaining control over their assets.

Unlike Chapter 7 bankruptcy, which involves liquidation, or Chapter 13 bankruptcy, which is designed for individuals with regular income, Chapter 11 provides a flexible framework for reorganizing debt under court supervision.

This option is commonly used by businesses that want to stay operational while addressing financial challenges, but individuals who exceed Chapter 7 and Chapter 13 debt limits can also benefit.

The process begins with filing a petition in bankruptcy court, triggering an automatic stay that halts collection efforts, lawsuits, and foreclosures. The debtor then develops a reorganization plan, which outlines how debts will be repaid, reduced, or restructured over time. This plan must be approved by the court and agreed upon by creditors.

While Chapter 11 offers the advantage of continued operations and asset protection, it is a complex process requiring detailed financial planning, ongoing compliance, and creditor negotiations. Due to its challenges, having experienced legal counsel is necessary to navigate the process effectively and achieve long-term financial stability.

How Chapter 11 Bankruptcy Works in Southfield

Chapter 11 bankruptcy is a structured legal process that allows businesses and high-debt individuals to reorganize their financial obligations while retaining control over their assets. The process involves multiple steps, each playing a role in achieving financial stability.

Filing the Bankruptcy Petition – The process begins when you file a petition with the bankruptcy court. This can be voluntary (initiated by the debtor) or involuntary (filed by creditors seeking repayment).
Automatic Stay Protection – Once the petition is filed, an automatic stay goes into effect, stopping all collection efforts, lawsuits, and foreclosure actions, giving you time to restructure your finances.
Developing a Reorganization Plan – You must submit a detailed plan outlining how debts will be repaid, reduced, or renegotiated. This plan may include restructuring loan terms, reducing expenses, or selling assets.
Creditor and Court Approval – Creditors have the opportunity to review and vote on the plan. If objections arise, modifications may be required. The court then evaluates whether the plan is fair, feasible, and in the best interest of creditors.
Your Responsibilities – Throughout the process, you can continue operating your business, but must comply with strict financial reporting requirements. Regular updates must be provided to the court and creditors. A U.S. trustee oversees compliance and ensures transparency.

Due to its complexity, working with our Chapter 11 bankruptcy attorney in Southfield is important to achieving a successful reorganization and long-term financial stability.

Benefits of a Southfield Chapter 11 Bankruptcy

Chapter 11 bankruptcy provides struggling businesses and high-debt individuals with a chance to regain financial stability while maintaining control over their assets. Unlike Chapter 7, which involves liquidating assets to pay off creditors, Chapter 11 focuses on restructuring debt and creating a manageable repayment plan.

This option is particularly beneficial for businesses in Southfield that want to continue operating while addressing their financial challenges.

Continued Business Operations – One of the most significant advantages of Chapter 11 is that businesses can remain open while reorganizing their debt. This allows them to generate revenue, keep employees, and maintain customer relationships instead of shutting down entirely. Individuals who qualify can also protect their assets while working toward financial stability.
Flexible Debt Restructuring – Chapter 11 bankruptcy allows you to renegotiate the terms of your debt with creditors. This can include extending repayment periods, lowering interest rates, or even reducing the total amount owed. The ability to customize a repayment plan based on financial capacity makes this a viable solution for businesses and individuals facing overwhelming debt.
Protection from Creditors – Once you file for Chapter 11, an automatic stay is issued, which immediately stops collection actions, lawsuits, foreclosures, and creditor harassment. This legal protection gives you time to develop a workable reorganization plan without the immediate threat of losing assets or facing legal action from creditors.
Retention of Assets – Unlike Chapter 7 bankruptcy, where assets may be liquidated to pay off debts, Chapter 11 allows businesses and individuals to retain ownership of valuable property, real estate, and business assets while working on a repayment strategy. This helps maintain financial stability and prevents the loss of essential resources needed for recovery.
Debt Reduction and Discharge Opportunities – In some cases, debts may be reduced or even discharged through negotiations with creditors. If a business or individual proves that certain debts are unmanageable, creditors may agree to lower the total amount owed, making repayment more feasible.
Improved Financial Health and Business Growth – Once a reorganization plan is approved and successfully implemented, businesses and individuals can emerge from bankruptcy with a stronger financial foundation. By restructuring debts and improving financial management, Chapter 11 provides a path toward long-term success and financial recovery.

How to File for Chapter 11 Bankruptcy in Southfield

Filing for Chapter 11 bankruptcy is a complex legal process that involves multiple steps, court oversight, and detailed financial planning. Businesses and individuals in Southfield who are struggling with overwhelming debt must carefully follow these steps to ensure a successful reorganization.

Step 1: Consult Our Chapter 11 Bankruptcy Attorney

Before filing, consult with our Chapter 11 lawyers. Chapter 11 is highly technical, and legal guidance can help assess whether it is the best option or if alternative debt relief solutions, such as Chapter 7 or Chapter 13, may be more suitable. Our Chapter 11 legal services include preparing financial documents and guiding you through the legal process.

Step 2: Gather Financial Information

A detailed review of your financial status is necessary. This includes:

Listing all assets and liabilities
Reviewing outstanding debts and creditor claims
Analyzing income and expenses
Preparing recent tax returns and financial statements

These documents must be accurate and transparent, as they will be submitted to the court and reviewed by creditors.

Step 3: File the Bankruptcy Petition

The bankruptcy process officially begins when you file a petition with the U.S. Bankruptcy Court for the Eastern District of Michigan, which oversees Southfield cases. The petition includes:

A voluntary bankruptcy filing form
A list of all creditors and the amounts owed
A detailed summary of your financial situation

Once the petition is filed, an automatic stay goes into effect, immediately stopping all collection efforts, foreclosures, lawsuits, and creditor harassment.

Step 4: Assume Debtor-in-Possession (DIP) Status

In Chapter 11, you retain control of your assets and operations under the status of Debtor in Possession (DIP). However, major financial decisions, such as taking out new loans, selling assets, or making large business changes, require court approval.

Step 5: Develop a Reorganization Plan

You have 120 days to submit a reorganization plan to the court, though this period can be extended in some cases. The plan outlines how debts will be repaid, restructured, or discharged. It may include:

Modifying loan terms and payment schedules
Renegotiating leases or contracts
Selling off non-essential assets to raise funds
Reducing operational costs

The goal is to create a feasible plan that allows you to regain financial stability while satisfying creditor claims.

Step 6: Obtain Creditor and Court Approval

Once the reorganization plan is submitted, creditors review it and vote on its approval. If a majority agrees to the terms, the plan moves to the bankruptcy court for final confirmation. The court evaluates whether the plan is:

Fair – Treats all creditors reasonably
Feasible – Can realistically be implemented
In the best interest of creditors – Provides a better outcome than liquidation

Once approved, you must follow the plan’s terms and make scheduled payments.

Step 7: Implement the Plan and Comply with Court Orders

After court approval, you must strictly follow the reorganization plan. This includes:

Making timely payments to creditors
Providing regular financial reports to the court
Following any restrictions on financial decisions

Failure to comply may result in the dismissal of the bankruptcy case or conversion to Chapter 7, where assets may be liquidated.

Who Qualifies for Chapter 11 in Southfield?

Chapter 11 bankruptcy is primarily designed for businesses and individuals with significant debt who need to restructure their financial obligations while continuing operations. Unlike Chapter 7, which focuses on liquidation, Chapter 11 allows you to reorganize and develop a repayment plan.

In Southfield, businesses and high-debt individuals may qualify based on the following criteria:

Businesses Seeking to Restructure Instead of Closing Down – Chapter 11 is often used by small and large businesses that are struggling financially but wish to remain open. It provides an opportunity to renegotiate debts, modify contracts, and adjust operations to regain financial stability. This option is especially beneficial for corporations, partnerships, and sole proprietorships that need time to implement a turnaround strategy.
High-Debt Individuals Exceeding Chapter 7 and Chapter 13 Limits – While Chapter 11 is commonly associated with businesses, individuals with substantial debt may also qualify. If a person’s secured and unsecured debts exceed the limits set for Chapter 13 bankruptcy, they may use Chapter 11 to restructure their finances. This is often the case for entrepreneurs, real estate investors, or high-income individuals facing overwhelming financial obligations.
Eligibility Criteria and Financial Considerations – There are no strict income or debt limits for Chapter 11, unlike Chapter 7 or Chapter 13. However, you must be able to demonstrate a viable plan for restructuring and repaying debts. The court will assess whether you have a reasonable chance of reorganizing successfully, which typically requires:

A steady income or revenue stream to support a reorganization plan
A commitment to following court guidelines and making scheduled payments
The ability to work with creditors and propose a fair and feasible repayment strategy

Life After Chapter 11 Bankruptcy

Emerging from Chapter 11 is just the beginning of a financial recovery journey. To ensure long-term success, you must follow their reorganization plan, rebuild their credit, and implement strategies to strengthen financial stability.

Implementing the Reorganization Plan – After the court approves the plan, you must strictly adhere to its terms. This includes making scheduled payments to creditors, following any restructuring agreements, and maintaining compliance with financial reporting requirements. Consistency and discipline are key to completing the plan successfully.
Rebuilding Credit and Financial Stability – Chapter 11 can impact credit scores, but financial recovery is possible with responsible money management. You should focus on making timely payments, avoiding excessive new debt, and maintaining a healthy cash flow. Businesses can rebuild trust with suppliers and lenders by demonstrating financial discipline and reliability.
Thriving Post-Bankruptcy – For businesses, restructuring presents an opportunity to improve efficiency and profitability. This may involve streamlining operations, cutting unnecessary expenses, renegotiating contracts, and focusing on sustainable growth. Strong financial planning and strategic decision-making can help businesses regain stability and achieve long-term success after bankruptcy.

Hiring Frego & Associates for Chapter 11 in Southfield

At Frego & Associates, we know that financial difficulties can feel overwhelming, but you don’t have to face them alone. For over 25 years, our legal services have helped businesses and individuals navigate bankruptcy, offering expert legal guidance and personalized solutions.

As Michigan’s largest bankruptcy law firm for the past 20 years, we have successfully filed over 40,000 bankruptcy cases, making us the most experienced bankruptcy attorneys in the state.

Our local Southfield bankruptcy lawyers are knowledgeable about Chapter 11 bankruptcy. We help businesses and high-debt individuals restructure their finances while protecting their assets and operations. Our attorneys work closely with you to develop a realistic and effective reorganization plan, negotiate with creditors, and ensure compliance with all legal requirements. With our deep understanding of bankruptcy law and strategic approach, we make the complex Chapter 11 process manageable and less stressful.

We offer FREE consultations and bankruptcy analysis, so you can explore your options with confidence before making any decisions. Ranked among the best attorneys in Michigan, our team is dedicated to providing the highest level of service. Contact us today for a free consultation.

Office Location

23843 Joy Rd
Dearborn Heights, MI 48127

Monday: 9 AM-5:15 PM
Tuesday: 9 AM-5:15 PM
Wednesday: 9 AM-5:15 PM
Thursday: 9 AM-5:15 PM
Friday: 9 AM-5:15 PM
Saturday: 9 AM-12 PM
Sunday: Closed

We offer late night appointments as late as 6:30 by phone or in person Mon-Thur.

Highly Recommended

Get a Free Consultation