Call us for a complimentary consultation at 954-356-0450
An Overview from a Broward Bankruptcy Attorney
Chapter 11 is available to both individuals and businesses. It can provide a lifeline for small businesses. For those individuals with debts in excess of $1,000,000.00 it may provide an opportunity to reorganize that may not be available in Chapter 13. For a small business a Chapter 11 bankruptcy filing allows the business to reorganize its debts and make arrangements to pay all or a portion of the debts while obtaining protection from creditors. A small business Chapter 11 also may be used to sell the business as a going concern. Our office has filed numerous Chapter 11 cases in Broward County and throughout South Florida.
A small business can invoke the protection of Chapter 11 to hold collection actions and levies at bay while developing a plan of reorganization. If your business has suffered a temporary setback a Chapter 11 may give you the time you need to get caught up on bills. It also provides a forum to negotiate with all creditors in a setting favorable to the business. Chapter 11 can also be used to liquidate a small business in an orderly fashion. Call us if you would like an assessment of whether a Chapter 11 can help your business. We work hard for our clients to find the right solution for any business situation. David Langley has been practicing in the Fort Lauderdale area for over 30 years and can assist you with your financial problems.
Individuals may also file for Chapter 11 bankruptcy protection. There is no debt ceiling for a Chapter 11 as there is in Chapter 13 nor is there a limit on the length of a plan. An individual Chapter 11 also provides greater flexibility than a Chapter 13. In this difficult economy many real estate investors are turning to Chapter 11 to allow them time to sell properties and reorganize debts. We have also filed Chapter 11's for several physicians. See the CNN Money article on doctors filing for bankruptcy protection on our Radio and Television Appearances page.
Condo associations can also file for Chapter 11 bankruptcy protection. Many condo associations are still facing serious financial problems from past hurricanes and financial slow downs. When the unit owners are in foreclosure the banks often drag their feet as they are in no hurry to take title to the units and by doing so incur the monthly maintenance fees. While not a solution for all associations, a Chapter 11 reorganization can stop pending lawsuits and levies, force all creditors to deal with the association in one forum, prevent utility companies from terminating service and allow the association to reject unfavorable leases. The association should have a clear exit strategy before filing a Chapter 11 proceeding. We have successfully confirmed plans for several associations.
Bankruptcy protection also provides a means to stop IRS collection procedures for a period of time while payments are made. Bankruptcy Code § 362, which grants debtors automatic relief from collection activity, applies to the IRS in the same manner as other creditors. Priority and non-priority taxes can be treated in a Chapter 11 plan and paid out over time. This may allow a business which has been seized by the IRS to re-open and operate without interference from the IRS or other creditors.
Some Chapter 11 Success Stories
We have filed Chapter 11 for many individuals and small businesses over the past 30 plus years of practice in bankruptcy law. Here are a few examples:
We recently confirmed a Chapter 11 Plan for a Fisher Island resident after successfully removing a second mortgage in excess of $5,000,000.00 from the residence. We handle many individual Chapter 11s.
In the past two years we have confirmed two Chapter 11 Plans for local condominium associations. The Plans allowed the Associations to stop lawsuits and significantly reduce the outstanding debt.
Individual Chapter 11 to stop a foreclosure, allow the client to convert a small rental building to condo and sell off two units to pay down debt and reinstate mortgages.
Small business Chapter 11 to stop an IRS levy and allow the client to negotiate a payment plan with the IRS. We were able to file and remove all levies within 48 hours and save over 100 jobs.
Small business Chapter 11 for a toy distributor which allowed the client to sell the business as a going concern and shed most of the company debt.
A Chapter 11 for an LLC which owned two apartment complexes to reduce the secured debt to the appraised value of the real property.
Small business Chapter 11 for a mortgage company to stop a foreclosure proceeding by its warehouse line lender.
We currently have a number of individuals and couples in Chapter 11 to negotiate a payment plan to reinstate their mortgages.
Call us to see if there might be a strategy to help you or your business at 954-356-0450.
This article is not intended as a substitute for competent legal or accounting representation, but merely as a guide to help you decide whether you need the services of a licensed attorney or CPA.
David W. Langley is licensed to practice only in the State of Florida and handles bankruptcy cases in South Florida, Miami, Hollywood, Fort Lauderdale, Plantation, Pembroke Pines, Pompano,Coral Springs, Deerfield, Boca Raton, Delray and West Palm Beach.
Law Offices of David W. Langley
8551 W. Sunrise Blvd., Suite 303
Plantation, FL 33322
Phone: (954) 356-0450
Fax: (954) 356-0451
For an appointment call (954) 356-0450