Salem, Oregon Chapter 11 Bankruptcy Attorney
Chapter 11 cases are generally reserved for business debtors or debtors with large amounts of debt. A Chapter 11 case involves the formulation of a plan of reorganization, that is sent to Creditors for a “vote”. If the plan receives enough votes, and if it otherwise complies with the requirements of the bankruptcy code, the plan is confirmed (approved) by the court. Upon confirmation of a Chapter 11 plan, all debt is discharged except the debt which is provided for in the plan. The plan binds both the debtor and all creditors, and in essence sets forth the rights and responsibilities of all parties.
Chapter 11 cases can be either simple or complex depending on the nature of the debtor, the debt, and the character of the case. Chapter 11 plans are relatively flexible, and as long as a debtor can garner sufficient support for a plan and thereafter fulfill the plan, reorganization of the debtor can be a success. However, with flexibility often comes complexity in administration. Chapter 11 cases are generally expensive to undertake when compared to Chapter 7 and Chapter 13 cases. Before deciding whether to file a Chapter 11 case, the debtor needs to carefully weigh the costs and benefits of a Chapter 11. A Chapter 11 requires the assistance of competent legal counsel and other professionals. If you or your business are contemplating a Chapter 11 case, it is best to spend some time, money and effort evaluating the case with an attorney before filing the petition. It is also helpful to discuss the likely strategy for reorganization well in advance of filing the petition with the court.
Relatively few attorneys in the Salem area have the experience or inclination to file Chapter 11 cases. Most large business Chapter 11 cases are handled by large firms in Portland or Eugene due to the inherent complexity, time and resources involved. Our firm handles Small Business and Individual Chapter 11 cases on a case by case basis.