Harmony Law, LLC can help you with your Chapter 11 bankruptcy. The fallout from the recent lock downs and social distancing rules are causing chaos with many businesses like yours. Businesses are not meant to run for several months without customers or business. We all have to work together to help businesses like yours weather the downturn caused by Covid-19. Here are the answers to some frequently asked questions:
Question: How much does a Chapter 11 cost?
Answer: The filing fee is $1,717. However, that is just the start. There are recurring costs and attorney's fees as the case progresses.
Question: How long does a Chapter 11 take?
Answer: It can take several months to two years.
Question: Is Chapter 11 used for liquidating the company?
Answer: No. Chapter 11 is used to get some breathing room with the creditors and develop a plan to continue the business.
Question: Do I have to hand over control of my company to someone, like the trustee?
Answer: That can happen, but actually, most small businesses continue to run their business as normal during the bankruptcy proceedings. They are called the "debtor in possession" or DIP.
Question: Do I have to go to court?
Answer: Not exactly. All companies have to send a representative to the section 341 meeting. That is done by video and phone sometimes. (and with the recent virus, it is mandatory right now) There could be a situation where a personal appearance is needed for a court hearing on some special dispute, but that is rare.
Question: What type of work is required to file a Chapter 11?
Answer: There is lots of paperwork to be done in a Chapter 11. You will have to work with your finance person and accountant and lawyer to get all the paperwork in order and presented in the proceedings. This can require bank statements, income tax returns, financial statements and balance statements.
Harmony Law, LLC can help you with the Chapter 11. Please give us a call at 970-488-1857.