Secured Claims in Chapter 11 Bankruptcy

Businesses never want to consider filing for bankruptcy. But if your company is buried in overwhelming debt, filing for Chapter 11 bankruptcy may be your best option. Chapter 11 reorganization bankruptcy is designed to try to reduce the value of a business's debts to match the value of its assets.

Debts exceeding the value of the business assets are generally treated as unsecured debts and can be forgiven. Unsecured debts can be renegotiated and paid over time. This is a highly complicated legal process. At Saeed & Little LLP, we have more than 60 years of collective experience helping businesses gain a fresh start through filing for Chapter 11 bankruptcy. Contact our law firm today to schedule a free telephone consultation with a highly skilled business bankruptcy attorney in Indianapolis.

Handling Secured Claims in Chapter 11 Bankruptcy Proceedings

Chapter 11 bankruptcy is designed to help business owners remain in control of their operation. Business owners submit a repayment plan to the bankruptcy court explaining how sufficient profit margins will help the business pay off some or most of its unsecured debt. Chapter 11 bankruptcy provides business owners some flexibility in paying back secured claims for:

• Equipment loans
• Back taxes
• Burdensome leases

Creditors vote to accept or reject the repayment plan. If the creditors agree, the new payment plan becomes a contractual agreement between the creditors and the business owners. Based on the repayment plan, secured debts can be negotiated down to a lower interest rate, and business owners need pay only the value of the collateral that secures the claim over a reasonable time period. The rest of the debts are discharged or treated as unsecured debts. Those claims are paid based on what your business shows it is able to pay over a period of years.

Through Chapter 11 bankruptcy, business owners remain in complete control of their operation. Businesses can get rid of bad debts such as leases and mortgages that provide no benefit to the business. Debt reorganization helps businesses keep the assets that are valuable to them and pay only what the assets are worth.

Contact a Bloomington Bankruptcy Attorney

To discuss reorganizing your business debts through Chapter 11 bankruptcy, contact our law firm today to meet with a highly skilled business bankruptcy lawyer. We can help you find the best solution and take decisive action to regain your financial footing.

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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.