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Chapter 11 Bankruptcy Lawyer in York, PA

Call (717) 559-0271 to Learn if Chapter 11 is Right for Your Company

When the debts of a company become insurmountable and it fails to generate enough profit to remain financially afloat, there are often two choices: close down or file for bankruptcy, try to reorganize, and continue business operations. In recent years, U.S. companies such as United Airlines, General Motors, and K-Mart have filed for Chapter 11 bankruptcy to restructure existing debt and satisfy their obligations to creditors while continuing to run their businesses. In addition, Chapter 11 bankruptcy is also available for small businesses.

Our York bankruptcy attorneys at Dethlefs Pykosh & Murphy can help companies file Chapter 11 bankruptcy in Pennsylvania. We understand the advantages of Chapter 11 in order to determine if it is right for your business.

How Chapter 11 Bankruptcy Works

Chapter 11 bankruptcy is typically filed by corporations, partnerships, limited liability companies, and small businesses. Individuals can file under Chapter 11 if their debt or income surpasses the amount eligible for Chapter 7 and Chapter 13 bankruptcy.

Unlike other forms of bankruptcy, no trustee is appointed. Rather, the debtor continues to run its company.

Essentially, the bankruptcy court has control of significant decisions, such as any sales of assets or properties, going into or voiding a new lease, making financial arrangements, expanding business operations, entering into a union, etc.

Debtors must create a reorganization plan that is likely to succeed and made in good faith—as well as made in the best interests of creditors. Once the plan is confirmed by the bankruptcy court, the company’s existing debts are discharged. Creditors are repaid according to the terms of the reorganization plan.

Chapter 11 cases usually take anywhere from six months to two years to complete.

Schedule a Free Consultation Today

Our York bankruptcy attorneys can help you determine if Chapter 11 is the best option for your business. Throughout the legal process, we can protect your rights and best interests, while you focus entirely on getting your company back on track.

Contact our Chapter 11 bankruptcy lawyer today to discuss your case.