Experienced in Small and Medium-Sized Business Reorganizations

 

If you are struggling to operate a small to medium-size business in the face of debt and collection actions by creditors there are legal options available that can enable you to continue operating and restructure the existing debt. Hartford Chapter 11 bankruptcy attorney Edward P. Jurkiewicz at Lawrence & Jurkiewicz, LLC can review your situation and let you know what your options are.

Chapter 11 Explained

Chapter 11 is sometimes known as “business reorganization”. In chapter 11 reorganizations the “debtor in possession” develops a plan to restructure business debt on an ongoing basis. The plan is usually negotiated with those creditors who are active in the case, who then vote on the plan. If the plan conforms to the requirements of the bankruptcy code, the bankruptcy court “confirms” the plan, thereby giving it the status of a new and binding contract between the business and its creditors.

Creditor Actions Stop While Business Operations Continue

As with other types of bankruptcy, the commencement or continuation of lawsuits, including foreclosures and repossessions, are stayed when the case is begun. Most chapter 11 debtors remain in possession of their business assets and continue business operations.

Modify Secured Debt

In a chapter 11 plan the holder of a secured claim (for example, a mortgage secured by commercial real estate, equipment and inventory) must retain its lien to the extent of the full value of its interest in the collateral. However, such claims can be modified by extending the due date, reducing monthly payments, revising the interest rate, and reducing the amount of the claim to the true value of the collateral (“lien-stripping”).

Reduce Unsecured Trade Debt

Unsecured trade debt can be satisfied by paying a fraction of the claims, over time.

Contact Lawyer Edward P. Jurkiewicz Today

If you would like to learn more about our firm, please contact our office. We offer a free initial consultation to discuss your situation. With offices in Hartford, Avon and Torrington, we represent clients throughout Connecticut, including the Greater Hartford metropolitan area, and the Farmington Valley and Litchfield County areas.

Hartford area bankruptcy attorney and divorce lawyer Edward P. Jurkiewicz has over 20 years of experience representing clients. Our firm represents debtors and creditors and handles both relatively simple divorces and bankruptcies and more complex litigation matters. With this depth of experience, our firm is able to anticipate and prepare for any potential issues that could arise in your bankruptcy, divorce or family matter.

CONTACT US TODAY AT 860-299-6263

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