Filing Chapter 11 in Massachusetts

DeBruyckere Roth & Associates, PLLC assists companies filing for Chapter 11 bankruptcy. Chapter 11 bankruptcy is typically used by businesses struggling to pay back creditors. Rather than liquidate assets, Chapter 11 involves reorganizing the company in an effort to return it to stability or profitability.

With Chapter 11, the company makes payments to creditors according to an established schedule, as approved by a creditor committee. A major advantage of Chapter 11 is that the company enjoys the status of “debtor in possession,” which means that business owners maintain control over their assets while reorganizing. Chapter 11 also allows owners the continued right to use, sell, or lease property in your bankruptcy estate.

How Chapter 11 works

The 341 meeting

The details of the Chapter 11 plan, formulated by the owner of the business, must be approved by the creditors’ committee. As part of this process, the owner—or debtor in possession—is required to disclose details about the financial situation of the business to creditors. Creditors usually receive information about the debtor’s reorganization plan and its viability in the “341 meeting.” The debtor in possession is required to attend this meeting and answer questions under oath. Typically, the meeting is conducted by the U.S. Trustee.

If you have questions about the 341 meeting or how to create a viable business reorganization plan, contact our attorneys for business bankruptcy in Massachusetts.

Responsibilities of the debtor in possession

As the debtors in possession, owners of businesses filing for Chapter 11 have several responsibilities:

• Accounting for property
• Examining and objecting to claims
• Filing informational reports required by the court or U.S. Trustee
• Paying creditors according to the established repayment schedule

Different types of companies may face different decisions concerning how to address assets. For example, Chapter 11 for a corporation does not put the personal assets of stockholders at risk, while Chapter 11 for a sole proprietorship could include both business and personal assets. A skilled attorney at DeBruyckere Roth & Associates, PLLC can help you navigate a Chapter 11 bankruptcy in Massachusetts.

Call 978 686-4600 to file a business bankruptcy in Massachusetts.