Chapter 11 New Orleans Business Bankruptcy Lawyer & Business Bankruptcy Law Firm
What is a Chapter 11 Business Bankruptcy? Who would file a Chapter 11 bankruptcy in New Orleans?
A bankruptcy case filed under Chapter 11 of the U.S. Bankruptcy Code will generally be filed by a New Orleans 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 Orleans Parish 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 New Orleans 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 New Orleans, Orleans Parish, Louisiana, area can provide invaluable financial support to businesses and provide guidance of when it might be time to seek the advice of a qualified New Orleans Chapter 11 bankruptcy attorney. Some New Orleans area financial professionals include:
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John Hancock Financial Network
Baldwin Subaru |
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Baldwin Subaru
Professional Financial Services |
Chapter 11 bankruptcies may also be filed by individuals in New Orleans and Orleans Parish (an individual may be an unmarried person, a married person filing alone, or a married couple). |
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 New Orleans Chapter 11 bankruptcy is much more complicated and requires the advice of a qualified New Orleans Bankruptcy Attorney.
Common types of creditors in New Orleans, Louisiana, with whom a person may have very high debts that disqualify them filing a chapter 13 bankruptcy:
Banks and Mortgage Companies such as Capital One Bank, 2 Westside Shopping Center, Gretna, LA, (504) 533-3779
Car Dealers such as Banner Chevrolet, 5950 Chef Menteur Highway, New Orleans, LA, (866) 301-3705
Jewelry Stores such as Lee Michaels Fine Jewelry, 333 Canal Street 106, New Orleans, LA, (504) 581-6161
The Basics of a Chapter 11 New Orleans Bankruptcy:
A qualified New Orleans 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 New Orleans and Orleans Parish, Louisiana (but they may vary depending on specific circumstances):
► The case begins when the petition is filed with the bankruptcy court. Orleans Parish cases are filed with the Louisiana Eastern Bankruptcy Court located in the Hale Boggs Federal Building, United States Courthouse, 500 Poydras Street, Suite B-601, New Orleans LA 70130 , (504) 589-7878
► 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 New Orleans Bankruptcy Attorney will advise you on the effects of confirmation of your plan.
Contact a New Orleans Bankruptcy Attorney for advice and consultation about filing a Ch. 11 Orleans Parish Bankruptcy.
Serving clients throughout Southeastern Louisiana, including Algiers, Alma, Bridge City, Chalmette, Destrehan, Elmwood, Gretna, Harahan, Harvey, Kenner, Luling, Meraux, Marrero, Metairie, Mt. Airy, New Orleans, River Ridge, South Kenner, Slidell, St. Benedict, St. James, St. Rose, Terrytown, Westwego, and other communities in Orleans Parish.