Quick Contact

In order to help you more quickly, please fill out the quick form or call us at 877-823-1264

!
!
!

Office Location

A decision to file for bankruptcy in any form—Chapter 7, 11, or 13—is difficult for businesses and individuals alike. However, bankruptcy can be a useful tool for saving an enterprise or the assets of an individual.

Chapter 11 bankruptcy is appropriate for distressed Indiana and Kentucky businesses that hope to remain viable, without being subject to liquidation (as is the case in a Chapter 7 bankruptcy filing). In rare cases where debts are exceptionally large, individuals may file a Chapter 11 bankruptcy, as well. At the Evansville law firm of Dunlap & Nesmith, LLC, our attorneys have the experience and expertise to assist you with a Chapter 11 bankruptcy.

In general, Chapter 11 bankruptcy provides the filer with these tools:

  • Mechanisms to restructure the business. The owner can continue to control business operations under the terms of debtor-in-possession, albeit the business is subject to jurisdiction and oversight by the court.
  • Ability to acquire financing and loans. New lenders are guaranteed first priority on business earnings by the bankruptcy court, which provides an incentive to make new loans at favorable terms.
  • Ability to reject and cancel executory contracts. Sometimes of great value to the filer, existing labor, supplier, and customer contracts as well as real estate leases that negatively impact the business can be cancelled at no penalty.
  • Automatic stay from the court on litigation against the business. This ceases collection attempts. However, parties attempting to collect significant debts can petition the judge for a Chapter 7 liquidation instead.

These are largely the tools of reorganization used by business owners when they intend to salvage the existing value of the business and eventually make it profitable again.

When to file Chapter 11 bankruptcy

If you are an individual, Chapter 7 or Chapter 13 filings usually make greater sense than to file under the terms and rules of Chapter 11. However, individuals with high income and high debt are sometimes ineligible for consolidation loans, so Chapter 11 might be a viable option for them. Typically, you would make payments over a five-year period. Individuals filing under Chapter 11 can cancel leases or mortgages that are unmanageable, as do businesses. Chapter 11 filers may also use the filing to prevent a real estate foreclosure.

Federal bankruptcy rules apply across all states, including Indiana and Kentucky. However, qualified attorneys who work in bankruptcy law are essential for guiding you through the specifics of state and federal laws, local bankruptcy courts, and creditor challenges to your bankruptcy filing.

Legal Counsel in Kentucky and Indiana Chapter 11 bankruptcy

Our Evansville law firm offers free consultation to discuss your financial situation. Please call Dunlap & Nesmith at 877-823-1264 or contact us online to schedule an appointment at no cost or obligation.