Chapter 11 bankruptcy in Fall River, MA, is generally referred to in the courts of law as a reorganization bankruptcy. After the market crash of 2008, several companies had no other option but to file for Chapter 11. Chapter 11 is usually filed by companies when their fiscal assets are not enough to pay off all their outstanding loans. Companies that usually file for this type of bankruptcy generally need a bit of time so that they can restructure their debts and then create a plan on how to reorganize their business. It’s widely regarded by many lawyers as the most complex of all other types of bankruptcy cases.
Breaking Down Chapter 11
If any business needs to file for Chapter 11 bankruptcy, they will need to hire a reliable lawyer to process their case. The Law Offices of Tara M. George, PC have lots of experience handling Chapter 11 cases and have helped plenty of companies that needed time to restructure their affairs and debts. In rare situations, individuals with a considerable amount of debt may also qualify to file for Chapter 11.
What Happens Next?
Once the Chapter 11 bankruptcy has been approved by the courts, the business may still operate, but they will be banned from making certain decisions unless they get approval from the courts. In situations where fraud, incompetence, or willful negligence has been detected, a trustee may be appointed by the courts to oversee the business operations. It means that the courts will have a greater say on how the business is restructuring itself and whether they will be able to pay off all their debts within the stipulated time period mentioned in the petition.
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