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Las Vegas Corporate Bankruptcy Attorneys

At Schwartz Flansburg, we are one of the few firms in this part of Nevada to provide Chapter 11 bankruptcy services. This type of bankruptcy is typically known as a “business reorganization” because it involves developing a plan of reorganization to present to creditors. The plan of reorganization is essentially the contract that tells creditors what they will receive through the reorganization. This chapter of the bankruptcy code usually applies to businesses or individuals with a significant amount of debt.

Experienced Chapter 11 Lawyer

Corporate bankruptcy can be both expensive and time consuming, which is why it is important to have an attorney with experience in Chapter 11 filings. Attorney Samuel A. Schwartz handled a wide range of Chapter 11 matters for large corporations, including Zenith Electronics, United Artists and W. R. Grace & Co. His experience makes our firm especially well prepared to handle reorganizations. Because of the cost of the fees and complexity of Chapter 11 bankruptcy rules, most cases are filed by businesses. There may be other choices, such as receivership, for companies experiencing cash flow problems. They may seek corporate liquidation under Chapter 7. Our lawyers advise clients about the best financial option for their circumstances.

The Chapter 11 Bankruptcy Process for Businesses

The steps for filing corporate bankruptcy include the following:

  • File the appropriate bankruptcy petition, which also includes schedules of assets and liabilities (including distressed debts), current income and expenditures, contracts and leases and financial statements;
  • The automatic stay goes into effect. This means that an injunction called the “automatic stay” is put in place to prevent creditors from pursuing the business for payment without bankruptcy court authority;
  • Management of the business is deemed by the court to be the debtor in possession. This allows management to continue to operate the business in the ordinary course;
  • Submit a reorganization/repayment plan to the court. The plan is essentially the contract which tells creditors what they are going to receive from the bankruptcy. The plan must be approved by creditors, which is one of the reasons that Chapter 11 filings can become complex.

These steps represent a simple explanation of a complicated process. For more information, Las Vegas businesses seeking debt relief through Chapter 11 should contact our law firm.

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