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Chapter 11 Gadsden Business Bankruptcy Lawyer & Business Bankruptcy Law Firm

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

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

A bankruptcy case filed under Chapter 11 of the U.S. Bankruptcy Code will generally be filed by a Gadsden 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 Etowah County 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 Gadsden 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 Gadsden, Etowah County, Alabama, area can provide invaluable financial support to businesses and provide guidance of when it might be time to seek the advice of a qualified Gadsden Chapter 11 bankruptcy attorney. Some Gadsden area financial professionals include:

Abel Company
408 S 4th Street, Gadsden, AL 35901
(256) 543-8646

Boatner Roger C
200 Broad Street, Gadsden, AL 35901
(256) 543-8902

Impact Accounting
215 Walnut Street, Gadsden, AL 35901
(256) 467-3526

Davis R Wesley
1050 Forrest Avenue, Gadsden, AL 35901
(256) 547-2588

 

Chapter 11 bankruptcies may also be filed by individuals in Gadsden and Etowah County (an individual may be an unmarried person, a married person filing alone, or a married couple).

Contact a Gadsden 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 Gadsden Chapter 11 bankruptcy is much more complicated and requires the advice of a qualified Gadsden Bankruptcy Attorney.

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

Banks and Mortgage Companies such as Wells Fargo Bank, National Association (201 Wall Street, Gadsden, AL 35904) and Regions Bank (200 Broad Street, Gadsden, AL 35901).

Car Dealers such as Alabama City Auto Sales (3413 Forrest Avenue, Gadsden, AL 35904) and B & B Auto Sales (2605 Forrest Avenue, Gadsden, AL 35904).

Jewelry Stores such as B & B Pawn & Jewelry (1220 W Meighan Boulevard, Gadsden, AL 35901) and Kay Jewelers (1001 Rainbow Drive, Gadsden, AL 35901).

The Basics of a Chapter 11 Gadsden Bankruptcy:

A qualified Gadsden 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 Gadsden and Etowah County, Alabama (but they may vary depending on specific circumstances):

► The case begins when the petition is filed with the bankruptcy court. Etowah County cases are filed with the Alabama Northern Bankruptcy Court located in the United States Courthouse, 1129 Noble Street, Anniston, AL 36201

► 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 Gadsden Bankruptcy Attorney will advise you on the effects of confirmation of your plan.

Contact a Gadsden Bankruptcy Attorney for advice and consultation about filing a Ch. 11 Etowah County Bankruptcy.

Serving clients throughout Northeastern Alabama, including Albertville, Anniston, Boaz, Brooksville, Centerpoint, Centre, Crossville, Eastaboga, Fort Payne, Gadsden, Guntersville, Jacksonville, Oneonta, Pell City, Piedmont, Scottsboro, and other communities in Etowah County.