Chapter 11 Bankruptcy Experienced & Trustworthy Service Since 2009

Chapter 11 Bankruptcy Attorney in Aurora

Serving Individuals & Businesses in Denver & Surrounding Areas

If you or your business is struggling to make ends meet, you are likely looking for a form of debt relief. But Chapter 7 and Chapter 13—the two most common forms of bankruptcy—have strict qualifications.

You may not qualify for (or benefit from) Chapters 7 or 13 if:

  • You have a high income
  • The type of debt you owe is not dischargeable
  • Your level of debt is extremely high
  • You have high-value assets you would like to protect from liquidation
  • You want to keep your business running and in your control

To help those facing the above situations, the government established Chapter 11 bankruptcy as a way for businesses and high net-worth individuals to reorganize and potentially reduce their debt. Like all forms of bankruptcy, Chapter 11 can help you achieve a fresh start and stronger financial foundations. It also triggers the automatic stay, which halts all collection activities. However, you will have to fulfill your obligations under the reorganization plan in order to derive maximum benefits.

Generally, Chapter 11 is a complex and expensive form of bankruptcy, which is why you will greatly benefit from professional and experienced assistance. At Consumer Law Pro, we can help you understand how the process works and determine whether it is the best way to resolve your financial situation. Our firm has been handling all kinds of bankruptcy cases for individuals and businesses since 2009, filing more than 2,000 cases throughout the state of Colorado. When you work with us, you can trust the quality of our counsel and depend on consistent, direct access to our attorney.

Looking for a way to reduce crushing debt? Consumer Law Pro can help you do so while keeping your business running and your assets safely in your possession. Call us at (303) 622-3833 to schedule your free consultation today.

How Does Chapter 11 Bankruptcy Work?

Most Chapter 11 bankruptcy petitions are filed by corporations, partnerships, and limited liability companies (LLCs), but individuals who do not qualify for a Chapter 7 or Chapter 13 may file as well. In most cases, business owners voluntarily file, but creditors can unite and force a company into a Chapter 11. In some cases, they can even propose the repayment plan themselves, which is why it is critical to have an attorney by your side, fighting for your best interests.

The length of the filing process can vary greatly, ranging from several months to several years. During this time, businesses can continue to operate under the filer’s control. The business owner is then known as the “debtor in possession.”

The Reorganization Plan

The debtor in possession generally has several months after filing a Chapter 11 petition to come up with a reorganization plan. The deadline for creating a reorganization plan can be extended if more time is needed and you have shown good faith to the court. Once the time limit has expired, your creditors can suggest their own reorganization plans.

Most plans work to reduce debt and expenses, thereby freeing up assets and income. Plans must be reasonable, created in the best interests of the creditors, and equitable to all parties. All secured debt (such as mortgage companies or those holding liens on equipment or inventory) must be paid through the plan, but any remaining unsecured debt after the plan has been completed may be forgiven.

Generally, Chapter 11 does not require a bankruptcy trustee, unless the court decides otherwise. However, the Bankruptcy Court must approve major restructuring decisions made by the debtor in possession, such as selling assets, downsizing, engaging in contract agreements, borrowing more money, and other activities.

Subchapter V: Small Business Bankruptcy

In February of 2020, the Small Business Reorganization Act added Subchapter V to Chapter 11 bankruptcy. This subchapter is only available to small businesses. Specifically, a business can only file under Subchapter V if they owe less than $2,725,625, at least half of which was accrued through commercial activities. If you qualify, you can experience several exclusive benefits not available to corporations, partnerships, or LLCs. Our attorney at Consumer Law Pro can assess your situation to determine whether you could qualify and benefit from Subchapter V.

Ready to get started? Get in touch with our Aurora Chapter 11 bankruptcy lawyer by filling out our online contact form or calling us directly at (303) 622-3833 today.

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  • Streamlined Bankruptcy Process
  • Reasonable Fixed Fees for Chapter 7
  • Thousands of Successful Chapter 7 & 13 Case Filings
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Contact us today to schedule your initial consultation with our seasoned bankruptcy attorney.