Sarasota Chapter 11 Bankruptcy Laws

Reorganization under Chapter 11 is available both to businesses, companies, and individuals alike.  Although Chapter 11 reorganization allows individuals the opportunity to pay back all or part of their financial obligations, many individuals do not choose to use Chapter 11 protection.  The costs of Chapter 11 are higher than other bankruptcy protection.  Court fees, reporting requirements and legal fees are often costly in Chapter 11.  This higher cost is the reason that many businesses rather than individuals choose Chapter 11 protection.

Under Chapter 11 bankruptcy law, a small business is able to hold off levies and collection actions while a reorganization plan is developed.  If your small business is struggling, Chapter 11 will provide you the time to catch up on past due bills.  In addition to providing your business with the time to catch up on past due bills, Chapter 11 also allows your business to come to an agreement favorable to your business as well as creditors.  For those who are looking to liquidate their business, Chapter 11 provides an organized way in which to liquidate your small business.

Bankruptcy protection also provides businesses and individuals with the ability to halt IRS collection procedures for a given period of time.  During this time payments must also be made.  Protection found under Bankruptcy  Code section 362 includes the IRS.  Bankruptcy code section 362 states that debtors are granted an automatic stay from collection activity.  Overdue taxes, both priority and non-priority, are covered by a Chapter 11 Bankruptcy plan and can be satisfied over a specified period of time.  This enables a business to stay open and fully operate in spite of seizure by the IRS.

For more information on bankruptcy issues, please view our bankruptcy advice page. Together we have compiled a list of frequently asked questions from consumers and businesses regarding bankruptcy.

If you are interested in determining if Chapter 11 Bankruptcy protection is right for you or your business please contact Sarasota Bankruptcy Lawyers R. John Cole II & Associates at (941) 365-4055.  It is our goal to find the right solution for our clients.