Chapter 11 Minneapolis Business Bankruptcy Lawyer & Business Bankruptcy Law Firm

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

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

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

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

Banks and Mortgage Companies such as M&I Business Credit LLC, 651 Nicollet Mall 450, Minneapolis, MN, (612) 677-8700

Car Dealers such as Poquet Auto Sales, 800 Lilac Drive North, Golden Valley, MN, (763) 522-2000

Jewelry Stores such as R F Moeller Jeweler, 555 Nicollet Mall, Minneapolis, MN, (612) 332-4141

The Basics of a Chapter 11 Minneapolis Bankruptcy:

A qualified Minneapolis 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 Minneapolis and Hennepin County, Minnesota (but they may vary depending on specific circumstances):

► The case begins when the petition is filed with the bankruptcy court. Hennepin County cases are filed with the Minnesota District Bankruptcy Court located in the 300 South Fourth Street, Room 301, Minneapolis, MN 55415, (612) 664-5200

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

Contact a Minneapolis Bankruptcy Attorney for advice and consultation about filing a Ch. 11 Hennepin County Bankruptcy.

Serving clients throughout Southeastern Minnesota, including Andover, Apple Valley, Austin, Blaine, Bloomington, Brooklyn Park, Burnsville, Cambridge, Champlin, Chanhassen, Coon Rapids, Cottage Grove, Duluth, Eagan, Eden Praire, Edina, Faribault, Hastings, Hutchinson, Inver Grove Heights, Lakeville, Little Falls, Mankato, Maple Grove, Maplewood, Minneapolis, Minnetonka, Monticello, New Prague, New Ulm, Northville, Oakdale, Ostego, Pine City, Plymouth, Ramsay, Redwood Falls, Rochester, Roseville, Shakopp Savage, St. Anthony, St. Cloud, St. Michael, St. Paul, St. Paul Park, White Bear Lake, Willmar, Woodbury, areas in the vicinity of Minneapolis-St. Paul International Airport, and other communities in Hennepin County.