Columbia Chapter 11 Bankruptcy Lawyers
Serving South Carolina
Chapter 11 bankruptcy is available to every business, whether organized as a corporation or sole proprietorship, and to individuals, although it is most prominently used by corporate entities.
Chapter 11 affords the debtor in possession a number of mechanisms to restructure its business. A debtor in possession can acquire financing and loans on favorable terms by giving new lenders first priority on the business’ earnings. The court may also permit the debtor in possession to reject and cancel contracts.
Debtors are also protected from other litigation against the business through the imposition of an automatic stay. While the automatic stay is in place, most litigation against the debtor is stayed, or put on hold, until it can be resolved in bankruptcy court, or resumed in its original venue.
Protect Your Business With Chapter 11 Bankruptcy
The Chapter 11 plan usually results in reorganization of the debtor’s business or personal assets and debts, but can also be used as a mechanism for liquidation. Debtors may “emerge” from a Chapter 11 bankruptcy within a few months or within several years, depending on the size and complexity of the bankruptcy.
If the judge approves the reorganization plan and if the creditors all agree, the plan can be confirmed. If at least one class of creditors votes against the plan and thus objects, the plan may nonetheless be confirmed if the requirements of cramdown are met.
In order to be confirmed over their objection, the plan must not discriminate against that class of creditors and the plan is fair and equitable to that class. Upon its confirmation, the plan becomes binding and identifies the treatment of debts and operations of the business for the duration of the plan.
At Meredith Law Firm, we provide knowledgeable representation to companies throughout South Carolina. Our lawyers help guide individuals and businesses, while obtaining the best results possible.
Contact Our Charleston Business Bankruptcy Attorneys Serving Surrounding Communities
If you would like to discuss your case with one of our experienced Columbia Chapter 11 bankruptcy attorneys, contact us today to schedule a free initial consultation. Call our North Charleston Office at 843-410-3961 or our Columbia Office at 803-753-7351 or our Myrtle Beach office at 843-353-3553. Our offices are open Monday through Friday from 8:30 a.m. to 5:30 p.m. We look forward to assisting you.
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