Westland Chapter 11 Lawyer

One of the Best Chapter 11 Bankruptcy Attorneys in Westland, 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

100+ Years of Combined Experience in Chapter 11 Bankruptcy Law

Chapter 11 bankruptcy isn’t just a legal term; it’s a mechanism for rejuvenation. Businesses, large and small, and individuals with overwhelming debt find solace in its provisions. Whether you are a small business owner looking to negotiate new terms with creditors or a corporation seeking comprehensive restructuring advice, our Chapter 11 bankruptcy attorneys are here to help you.

At Frego & Associates, our experienced Chapter 11 lawyers bring over a century of combined experience to the table, providing intelligent and strategic legal solutions tailored to the unique needs of each client.

Contact our top-rated and dedicated Westland Chapter 11 lawyers at Frego & Associates today for a free consultation.

What Does it Mean to File a Chapter 11 Bankruptcy?

Chapter 11, often called “reorganization bankruptcy,” helps businesses manage debt and stay operational. It allows companies to draft a reorganization plan within 120 days, subject to court approval, informing creditors of future plans.

Chapter 11 can reduce debt, void unfavorable contracts, recover assets, and streamline operations, leading to a reorganized business with reduced debt to get your life on track. [1]

Key features of Chapter 11 bankruptcy: [2]

Reorganization: Create a debt repayment plan to keep operating and repay creditors over time.
Debtor in Possession: The debtor usually keeps control of assets and operations.
Automatic Stay: This halts all collection activities, including lawsuits, repossessions of property, and foreclosures.
Creditors’ Committee: A group representing creditors may influence the reorganization plan.

Benefits of Chapter 11 for Businesses in Westland

Chapter 11 bankruptcy can be a valuable tool for businesses facing financial difficulties. It allows for reorganization rather than liquidation, providing a path to debt relief while preserving assets.

Below are some benefits offered by Chapter 11:

Asset Preservation: You can protect valuable assets that might otherwise be lost in a liquidation process. It ensures that your company has the resources necessary to execute your reorganization plans effectively.
Automatic Stay Provision: The moment you file a Chapter 11 petition, an automatic stay comes into effect, halting all collection activities from your creditors. It gives your business much-needed breathing room to focus on reorganization without the constant pressure from creditors.
Business Continuity: Chapter 11 allows you to continue business operations while restructuring debts. It means you can preserve jobs, retain customers, and maintain revenue streams as you work toward financial recovery.
Debt Restructuring: It offers an opportunity to renegotiate the terms of existing debts. You can improve cash flow and viability by reducing debt obligations or extending repayment terms.
Legal Flexibility: Chapter 11 provides a legal framework that can accommodate complex and customized planning. Businesses can address unique debts, such as environmental obligations or unique contractual agreements, within the reorganization plan.
Operational Control: Under Chapter 11, you can often remain in control of your business’s day-to-day operations as a “debtor in possession.” It allows you to manage your business affairs without the disruption that can accompany other forms of bankruptcy.
Potential for Debt Discharge: Once the reorganization plan is successfully implemented, you may have certain debts discharged, relieving your business entity from obligations that are deemed non-essential to debt restructuring.

Westland, Michigan, Chapter 11 Bankruptcy Exemptions

Chapter 11 bankruptcy allows Westland businesses to restructure their finances while continuing operations. This approach helps them tackle financial issues without having to close down completely. Knowing which are exempt and non-exempt assets is essential during this process.

Key Exemptions in Westland, Michigan: [3]

Homestead: In Westland, Michigan, you can protect a certain amount of equity in your primary residence from creditors under the homestead exemption, ensuring you do not lose your home in a bankruptcy scenario.
Personal Property: Michigan law allows you to exempt specific personal property items, such as clothing, household goods, and furnishings, up to a designated value, providing relief in retaining essential personal belongings.
Insurance: Certain life insurance benefits are protected under Michigan bankruptcy exemptions, ensuring that you can maintain access to these critical funds during financial restructurings.
Pensions: Michigan statutes safeguard retirement accounts and pensions, allowing individuals to preserve their retirement savings from creditor claims during Chapter 11 proceedings.
Wages: A portion of your wage may be exempt from creditors in Westland, Michigan, ensuring that you retain essential income for daily living expenses while under bankruptcy protection.
Public Benefits: Public benefits, such as Social Security or unemployment compensation, are generally exempt from creditor claims, ensuring that recipients continue to receive necessary support during bankruptcy reorganization.
Business Assets: Some business tools and equipment can be safeguarded.

Each exemption has specific limits and conditions. Hiring our local Westland Chapter 11 bankruptcy lawyer can help navigate the intricate bankruptcy process. We can assist you with filing for bankruptcy, determining applicable exemptions, and protecting your assets.

What Are The Procedures Involved in Chapter 11?

Chapter 11 bankruptcy is primarily designed for businesses, allowing them to reorganize their debts while continuing operations.

Here is a comprehensive look at the processes involved in Chapter 11 in Westland, Michigan: [2]

Initial Filing and Petition: The Chapter 11 process begins when a business files a bankruptcy petition in the United States Bankruptcy Court. It includes detailed documentation, such as financial statements and schedules of assets and liabilities, that provides a clear picture of the company’s financial situation.
Automatic Stay: Once the petition is filed, an automatic stay goes into effect. This legal provision halts all collection attempts from creditors, such as lawsuits, wage garnishments, and phone calls, thereby relieving immediate financial pressures on the business.
Formation of the Creditors’ Committee: A necessary step in Chapter 11 proceedings is the formation of a creditors’ committee. This committee represents the interests of unsecured creditors and plays a significant role in reviewing the business’s operations and negotiating the reorganization plan.
Development of the Reorganization Plan: Develop a reorganization plan that outlines how they intend to repay creditors, restructure debts, and manage business expenses moving forward. This plan must prioritize sustainable business practices to ensure long-term success.
Plan Confirmation: The reorganization plan must be approved by the creditors and confirmed by the bankruptcy court. Creditors typically vote on the plan, and approval is often contingent on the proposal showing a fair and equitable distribution of assets.
Implementation of the Plan: Once confirmed, the company begins to implement the reorganization plan. This phase often involves restructuring operations, selling unprofitable parts of the business, renegotiating contracts, and addressing any plan deviations.
Monitoring and Compliance: Throughout Chapter 11 proceedings, the company must regularly report its financials to the court and adhere to the terms of the confirmed plan. This ongoing oversight ensures that the business is meeting its obligations and progressing towards emerging successfully from bankruptcy.
Emergence from Chapter 11: The goal of Chapter 11 bankruptcy is for the business to emerge as a financially stable entity. Once the reorganization plan is fulfilled, the court discharges the business from bankruptcy, allowing it to operate without the constraints of the court’s supervision.

Do I Need the Help of an Attorney to File Chapter 11 Bankruptcy in Westland?

Filing for Chapter 11 bankruptcy is a complex process that often necessitates professional guidance. Our Westland bankruptcy attorneys are equipped to handle the intricate legal landscape and offer necessary support to file for bankruptcy.

Our bankruptcy law firm assists in preparing and filing your bankruptcy petition, gathering financial documents, and ensuring legal compliance, paving the way for a smoother bankruptcy process.
We collaborate with you to create a viable reorganization that includes an affordable payment plan, effective asset management, and a clear roadmap for your business’s future operations.
Our Chapter 11 attorneys evaluate your assets and guide you in claiming exemptions properly, ensuring that your business retains the resources necessary for its reorganization.
Our Westland bankruptcy attorneys represent your interests, engaging with creditors to work out favorable terms and advocating on your behalf to facilitate plan confirmation.
Frego & Associates’ Chapter 11 attorneys provide ongoing support to ensure compliance, file necessary reports, and address any issues that may arise during implementation of the reorganized plan.

Ultimately, having our attorney by your side not only streamlines the Chapter 11 process but also increases the likelihood of emerging successfully with a viable business plan.

Contact us for assistance if you would like a free consultation with a Chapter 11 bankruptcy lawyer today.

FAQs

Who can file Chapter 11 bankruptcy?

Chapter 11 bankruptcy mainly aids businesses in reorganizing debts while still operating. Individuals with significant assets and complex debt can also qualify. A condition for filing is not having a bankruptcy case dismissed in the last 180 days for failing to attend court.

Can my business successfully emerge from Chapter 11 bankruptcy?

Yes, with the right legal guidance and a solid reorganization plan, your business can successfully emerge from Chapter 11 bankruptcy. The objective is to restructure debt in a way that allows your business to regain profitability while addressing creditor concerns. Our experienced team is dedicated to crafting a viable strategy tailored to your unique business needs, enhancing the chances of a successful recovery.

Sources:

[1] Process – Bankruptcy Basics. (n.d.). United States Courts. https://www.uscourts.gov/court-programs/bankruptcy/bankruptcy-basics/process-bankruptcy-basics

[2] Chapter 11 – Bankruptcy Basics. (n.d.). United States Courts. https://www.uscourts.gov/court-programs/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics

[3] Michigan Bankruptcy exemption statutes | Justia Bankruptcy site. (n.d.). https://bankruptcy.justia.com/laws/michigan-bankruptcy-exemption-statutes-67/

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