Brooklyn Chapter 11 Bankruptcy Lawyer

When your business is deep in debt, you need more than hope. You need a clear legal strategy to survive. Chapter 11 bankruptcy offers a powerful solution for businesses facing financial distress. It lets you restructure debts and operations while remaining open.

At the Law Office of Gregory Messer in Brooklyn, we show New York business owners how an experienced Chapter 11 attorney can help manage their financial crisis. Attorney Gregory Messer is a board-certified attorney in consumer bankruptcy (since 1995). He has also served as a Panel Trustee in New York’s Southern and Eastern Districts (since 1980). This unique experience representing both debtors and creditors gives him unparalleled insight to create a workable plan to save your company.

What Chapter 11 Reorganization Offers

Chapter 11, often called “reorganization bankruptcy,” gives you key legal protections. It stops collection efforts and gives debtors the time and resources they need to change their financial duties.

Key benefits of Chapter 11 protection include:

• Automatic stay: Immediately stops creditors from taking collection actions or seizing assets.
• Continued operation/asset retention: The debtor keeps their assets. A business can stay open while they put the repayment plan in place.
• Contract relief: The plan can cancel bad debts, leases, and contracts, and offer longer payment plans for others.
• Repayment flexibility: Debtors can propose a longer, more manageable repayment plan for debts other bankruptcy types would not erase.

Our firm provides the legal knowledge and experience to give your company or personal finances the strong base they need to bounce back.

The Chapter 11 Bankruptcy Process

Chapter 11 is a detailed, complex path designed to help your business emerge stronger. The debtor generally stays in charge of their assets. They act as a trustee (debtor-in-possession or DIP) while submitting financial information to the court.

Key steps in the process include:

1. Filing the petition: This starts the case and immediately triggers the automatic stay.
2. Filing the reorganization plan: The DIP submits a plan, detailing how they will pay back different groups of creditors over time.
3. The best interests test: The plan must show that creditors will get a better return than if a Chapter 7 case sold the business assets.
4. Creditor vote and court confirmation: The bankruptcy court must approve the plan. Affected creditors may vote, and the plan must meet strict legal rules for approval.
5. Plan execution: Once the court approves the plan, the business starts it. They change operations and make payments until the reorganization is complete.

Successfully navigating these steps is vital. It lets the business legally end bankruptcy protection and return to financial health.

What Types Of Debts Can Be Discharged In Chapter 11 Bankruptcy In New York?

A key goal of a successful Chapter 11 case is the discharge of certain debts. This formally eliminates the debtor’s legal duty to pay them.

Generally, the reorganization plan’s confirmation discharges unsecured business and personal debts that existed beforehand, including:

• General unsecured business debts (vendors, suppliers, operating expenses)
• Unsecured loans and lines of credit
• Liabilities from contracts or leases successfully rejected during the bankruptcy
• Most prepetition litigation judgments

The court finalizes these discharges upon the successful completion and confirmation of the reorganization plan.

What Debts Cannot Be Discharged In Chapter 11 Bankruptcy?

While Chapter 11 is broad, certain debts, particularly those related to government entities or malicious actions, are nondischargeable under the Bankruptcy Code.

These nondischargeable debts must be paid in full or restructured for full repayment under the reorganization plan. They typically include:

• Recent tax liabilities (federal, state and local)
• Debts obtained by fraud or false written financial statements
• Government fines, penalties or forfeitures
• Domestic support obligations (alimony and child support)
• Debts arising from willful or malicious injury to another person or property

Addressing these obligations must be a central part of your overall reorganization plan.

How Can A Chapter 11 Bankruptcy Lawyer Help With Your Case?

Chapter 11 is very complex. It’s often too risky to attempt without an accomplished legal partner. A skilled attorney provides crucial support by:

• Ensuring compliance: Accurately preparing and filing extensive initial paperwork and ongoing financial reports.
• Negotiating with creditors: Leading talks to build agreement for the proposed reorganization plan.
• Drafting the plan: Creating a workable plan that meets strict legal rules and the “Best Interests of Creditors” test.
• Court representation: Representing the DIP in all hearings and defending the plan against creditor objections.

Attorney Gregory Messer provides the comprehensive skills needed to navigate this demanding process successfully.

Contact An Accomplished New York Chapter 11 Bankruptcy Lawyer

If your business is struggling with debt and you are interested in learning more about filing under Chapter 11, contact the Law Office of Gregory Messer.

Reach out to us online or at 347-943-8475 to schedule a free initial consultation. Our office in Brooklyn is conveniently located across the street from the U.S. Bankruptcy Court and close to the Borough Hall and Court Street subway stations. We serve clients throughout New York City, including Brooklyn, Manhattan, Queens, the Bronx and Staten Island. We are an appointment-only law firm with flexible hours to ensure every client’s filing receives the attention it deserves.

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