Utah business owners at times find it necessary to file a Chapter 11 bankruptcy to reorganize their debt under the United States Bankruptcy Code.
Chapter 11 allows Utah business owners to reorganize their debuts under the United States Bankruptcy Code. Chapter 11 bankruptcy filings are available to all Utah businesses including sole proprietorships and corporations as well as to some individuals. Usually Chapter 7 bankruptcy Utah lawyers assist with liquidations and Chapter 13 bankruptcy Utah lawyers assist with reorganizations usually filed by private individuals.
Not many Utah bankruptcy attorney law firms have experience filing business bankruptcies. But a Salt Lake City Utah Chapter 11 bankruptcy attorney can assist businesses with filing for federal bankruptcy protection under Chapter 11 or Chapter 7 when they are no longer able to meet their obligation to creditors or to service their debts. With a Chapter 7, Utah businesses cease operating and US Trustees sell off business assets to repay the creditors. In contrast, Chapter 11 usually allows the business debtors act as debtors in possession where they retain control of business operations under judicial oversight.
Chapter 11 plans typically reorganize the debtor’s personal and business assets and debts. The time frame of a Chapter 11 plan can range from months for smaller and simpler issues to years for larger and more complex issues. Usually Chapter 11 bankruptcy plans allow proposals from any party and require the interested creditors to vote on the plan.
Contact a Salt Lake City Utah Chapter 11 Bankruptcy Lawyer
If you own a business and want to discuss Chapter 11 bankruptcy options, feel free to contact us to speak with a Utah Chapter 11 bankruptcy attorneys at Pearson, Butler & Carson, PLLC, at (801) 495-4104 for a free consultation.