Chapter 11

Chapter 11 Bankruptcy (New York):

We file cases in NYC, Chapter 11 cases in Brooklyn as well as most areas in Long Island, NY.
We practice corporate bankruptcy in New York primarily high business tax debt.
Chapter 11 Bankruptcy is designed for Businesses that have a current and future profitable business that is worth saving and needs to reduce and restructure past debt obligations. Some of the benefits of Chapter 11 are as follows:
. Payout debt up to a 6 year period.
. Reduce and eliminate most tax penalties on priority tax claims.
. Work out deals with taxing authorities in Bankruptcy.
. Reduce unsecured tax to as little 10% of the claim depending on the asset structure of the corporation.
. Reject leases that are burdensome on the business.
. Stop all lawsuits and collection actions.
. Ability to offer new lenders D-I-P protection to secure funding.
. Sell assets free and clear of liens pursuant to Section 363.

Individuals can also utilize Chapter 11 in the following circumstances:
. Secured debt over the Chapter 13 Debt Limit.
. Unsecured debt over the Chapter 13 Debt Limit.
. Unique circumstances that might warrant taking their case to a creditor vote.

Chapter 11 is the most expensive Bankruptcy and thus should only be used in these circumstances and the Debtors must be prepared to:
. Attend status conferences.
. File operating reports every month.
. Pay secured debt claims currently after the bankruptcy filing.
. Stay current with leases that the Debtor wishes to affirm.
. Pay the administrative costs inherent in Chapter 11.

Small Business Chapter 11 Requirements under the New Law (Business bankruptcy New York)

  1. Must file recent tax returns, balance sheets, income statements & statement of cash flows at the time of filing.
  2. Monthly operating reports now must show projections, actual amounts & variances.
  3. The U.S. trustee can now inspect books and records.
  4. There is a 180 day exclusive period to file the plan.
  5. There is a 300 day period for anyone to file the plan or the case will be dismissed.
  6. For individual chapter 11’s, post-petition earnings are now property of the estate & must be considered during the life of the plan.

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