Chapter 11 Minot Business Bankruptcy Lawyer & Business Bankruptcy Law Firm

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

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

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

Anderson Boyd
24 W Central Avenue, Minot, ND 58701
(701) 852-0196

Awalt Rick
2537 10th Avenue NW, Minot, ND 58703
(701) 838-4926

Hance David CPA PC
6 1st Street SW, Minot, ND 58701
(701) 240-2410

Froseth Randy
1050 31st Avenue SW, Minot, ND 58701
(701) 839-4198

 

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

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

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

Banks and Mortgage Companies such as Norwest Bank Minot, National Association (Main Street And 2nd Avenue, Southwest, Minot, ND 58701) and Dacotah Bank (2401 North Broadway, Minot, ND 58703).

Car Dealers such as Minot Chrysler & Toyota Scion Center (3615 S Broadway, Minot, ND 58702, (701) 852-0151) and Ryan Family Dealerships (1800 S Broadway, Minot, ND 58701, (701) 852-3571).

Jewelry Stores such as Rick's Jewelry Inc. (23 South Main Street, Minot, ND 58701, (701) 852-2566) and Riddle's Jewelry (2400 10 Street SW, Suite 238, Minot, ND 58701, (701) 839-5288).

The Basics of a Chapter 11 Minot Bankruptcy:

A qualified Minot 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 Minot and Ward County, North Dakota (but they may vary depending on specific circumstances):

► The case begins when the petition is filed with the bankruptcy court. Ward County cases are filed with the North Dakota Bankruptcy Court located in Quentin N. Burdick United States Courthouse, 655 1st Avenue N, Fargo, ND 58102 - (701) 297-7100.

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

Contact a Minot Bankruptcy Attorney for advice and consultation about filing a Ch. 11 Ward County Bankruptcy.

Serving clients throughout North Central North Dakota, including Bottineau, Bowbells, Center, Fessenden, Garrison, Manning, McClusky, Minot, Newburg, Parshall, Rolla, Stanley, Tioga, Towner, Velva, Watford City, Williston, and other communities in Ward County.