Chapter 11 Fairbanks Business Bankruptcy Lawyer & Business Bankruptcy Law Firm

Business, large and small, may file for ch. 11 bankruptcy in Fairbanks, AK, which is a reorganization of debt and repayment plan.

What is a Chapter 11 Business Bankruptcy? Who would file a Chapter 11 bankruptcy in Fairbanks?

A bankruptcy case filed under Chapter 11 of the U.S. Bankruptcy Code will generally be filed by a Fairbanks area business, although this chapter is also available to individuals. While a business may choose to file a Chapter 7 bankruptcy (liquidation), it may not file a Chapter 13 bankruptcy (reorganization) because these are reserved for individuals. But it is very common for a business to want to reorganize its debts and stay in business rather than filing a Chapter 7 and liquidating all of its assets. Chapter 11 bankruptcies are available to Fairbanks North Star Borough businesses for this purpose (i.e., staying in business and restructuring the company's debts). Whether you are a small business or a large business, debt can beome overriding.

There are some famous Chapter 11 bankruptcy cases filed by some high profile companies: Lehman Brothers in 2008 (during the Wall Street collapse); Washington Mutual Bank which was quickly acquired by Chase Bank; and the Enron bankruptcy which brought to light unlawful accounting practices. It doesn't take unlawful accounting practices to get a business, even a small business, into trouble ... the current economy combined with poor bookkeeping and/or lack of financial planning can cause problems and conceal a looming financial crisis for Fairbanks businesses.

A business does not have to be completely insolvent before it is allowed to file a Chapter 11 bankruptcy case. Accountants and bookkeepers in the Fairbanks, Fairbanks North Star Borough, Alaska, area can provide invaluable financial support to businesses and provide guidance of when it might be time to seek the advice of a qualified Fairbanks Chapter 11 bankruptcy attorney. Some Fairbanks area financial professionals include:

Wilson & Wilson Certified Public Accountants
344 Minnie Street, Fairbanks, AK, 99701

Sam's Bookkeeping Service
Fairbanks, AK, 99701
Alaska Bookkeeping Services
114 Dunbar Avenue, Fairbanks, AK, 99701

Backwoods Bookkeeping & Payroll
887 Chena Hot Springs Road, Fairbanks, AK, 99712

 

Chapter 11 bankruptcies may also be filed by individuals in Fairbanks and Fairbanks North Star Borough (an individual may be an unmarried person, a married person filing alone, or a married couple).

Contact a Fairbanks bankruptcy lawyer for advice and assistance with your ch. 11 bankruptcy questions.The main reason an individual or married couple would want to file a Ch. 11 bankruptcy instead of a Ch. 13 case is because their debts may exceed the limits allowed in chapter 13 bankruptcy cases. Although similar to ch.13, a Fairbanks Chapter 11 bankruptcy is much more complicated and requires the advice of a qualified Fairbanks Bankruptcy Attorney.

Common types of creditors in Fairbanks, Alaska, with whom a person may have very high debts that disqualify them filing a chapter 13 bankruptcy:

Banks and Mortgage Companies such as Alaska National Bank of the North (794 University Avenue Fairbanks, Alaska 99701) and Arctic First Federal Savings and Loan Association ( 570 Gaffney Fairbanks, Alaska 99701).

Car Dealers such as Seekins Ford Lincoln Mercury (1625 Seekins Ford Drive, Fairbanks, AK, 99701) and Kck Auto Sales (2207 Judd Street, Fairbanks, AK, 99701).

Jewelry Stores such as Bishop's Jewelry Gallery of Gold & Diamonds (2034 Airport Way, Fairbanks, AK, 99701) and Gumm Judie Designs (3600 Main Street, Fairbanks, AK, 99709)

The Basics of a Chapter 11 Fairbanks Bankruptcy:

A qualified Fairbanks Bankruptcy Law Firm will have the expertise to guide their clients through the Chapter 11 bankruptcy process. Here are the common steps for Chapter 11 cases filed in Fairbanks and Fairbanks North Star Borough, Alaska (but they may vary depending on specific circumstances):

► The case begins when the petition is filed with the bankruptcy court. Fairbanks North Star Borough cases are filed with the for the District of Alaska Bankruptcy Court located in the Federal Building and United States Courthouse, 101 12th Avenue, Room 332, Fairbanks, AK 99701-6236, (907) 456-0349.

► The filing fee of $1,000 and administrative fee of $39 are paid.

► Upon filing of the petition and pursuant to Section 1107 of the bankruptcy code, the debtor assumes the responsibilities normally assigned to a trustee (as in a Chapter 7 or Chapter 11 case) and is known as "debtor in possession." This means the debtor may continue to operate the business, including paying employees.

► The debtor in possession also has the responsibility of filing monthly operating reports with the Court and the U.S. Trustee, filing and paying taxes, and creating a plan for reorganization.

► Although the debtor is given the authority to continue to operate the business in the ordinary course of business, the debtor is expected to do so in a manner in the best interest of all concerned. The interest of the creditors is protected by the formation of various creditor committees. These committees will have much influence on the reorganization plan being developed by the debtor in possession.

► A plan is proposed, a confirmation hearing is held, and eventually a plan will be confirmed.

► The plan is implemented.

► Confirmation of the plan can also mean discharge of debts incurred prior to confirmation, but there are many variables including whether the debtor is an individual or a business. Your Fairbanks Bankruptcy Attorney will advise you on the effects of confirmation of your plan.

Contact a Fairbanks Bankruptcy Attorney for advice and consultation about filing a Ch. 11 Fairbanks North Star Borough Bankruptcy.

Serving clients throughout Northern Alaska, including Anchorage, Cantwell, Chitina, Cordova, English Bay, Glennallen, Skwentina, Tatitlek, Tonsina, Trapper Creek, Valdez, areas in the vicinity of Anchorage International Airport, Elmendorf Air Force Base, and other communities in the Borough of Anchorage.