Thoughts from a Maryland Bankruptcy Lawyer

The post Can My Chapter 7 Case Be Converted To Chapter 11? appeared first on Baltimore Bankruptcy Lawyer.

“I’m very excited because I’m on the verge of getting out of Chapter 11 and we filed a plan of reorganization that pays everybody in full. Do I still need to file a disclosure statement?”

The short answer to that question is almost certainly going to be yes you do. Bankruptcy judges like to see the disclosure statement. They want to see the debtor make a real effort later in the bankruptcy case to pull everything together, to explain the history, how they got into the trouble they were in, the different aspects of their business, their projections, a balance sheet, a profit and loss, and these are the typical contents of a disclosure statement.

Even though you’re going to pay everybody in full the bankruptcy court is still going to want to see that disclosure statement as will the creditors.

The post The Chapter 11 Plan Pays Creditors In Full; Do We Still Need A Disclosure Statement? appeared first on Baltimore Bankruptcy Lawyer.

Chapter 11 cases tend to be complex and sophisticated reorganizations and restructurings of debt obligations that involve negotiations with creditors and a settling of income and expenses of the debtor to determine if the debtor really has a core business that can be reorganized and is throwing off enough profit to actually make a significant payment to unsecured creditors.

Technically speaking, the debtor is supposed to file a plan within the first 120 to 180 days after they file the case, but that deadline is frequently extended without much difficulty by the bankruptcy court.

Cases can go on for years and years and years if there’s litigation involved in the bankruptcy case or if the debtor has an extended payout or has to work through a lease or a contract or some other aspect of its finances.

The Chapter 11 process is long and that is part of the reason why it can be such an expensive remedy for business debtors or for individuals who have sophisticated financial situations.

The post How Long Does Chapter 11 Bankruptcy Take? appeared first on Baltimore Bankruptcy Lawyer.