Chapter 11 Reorganization and Corporate Insolvency

The attorneys of Butler & Butler, LLP practice law at the highest level of professionalism and are dedicated to providing legal services of unsurpassed quality to our clients. Our attorneys possess the experience and expertise to achieve excellent results in any given case. We strive to be efficient, seek to resolve our clients' issues through negotiation in appropriate cases and when it would be economical to do so, and will not hesitate to litigate when in the best interest of our client.

Having extensive experience in Chapter 11 corporate bankruptcy cases and business reorganizations, the attorneys of Butler & Butler, LLP have a high rate of success in meeting and exceeding our clients' goals in both reorganization and liquidation cases. We have significant knowledge and familiarity with the issues and economic realities of financially distressed situations, and can provide realistic and creative solutions to complicated problems.

The powerful provisions of Chapter 11 offer a great amount of protection and flexibility to financially distressed businesses in need of restructuring their debts or when they are experiencing corporate insolvency (the inability to pay one's debts when due). Under Chapter 11, litigation can be stopped, debts can be eliminated or stripped down, payment terms can be greatly extended, and interest rates can be reduced. Solvent businesses experiencing cash flow problems but wishing to satisfy their debts in full can utilize Chapter 11 bankruptcy to provide for a moratorium (a legally authorized period of delay in the performance of a legal obligation or the payment of a debt) on debt payments. This can enable the company to reestablish a positive cash flow and renegotiate much more favorable payment terms with its creditors, while allowing management to focus on business operations and on improving profitability, instead of fending off creditors. Chapter 11 also can be used by individuals with complex problems or debts in excess of the eligibility limits for Chapter 13 bankruptcy.

In Chapter 11, the debtor typically continues to operate as a debtor-in-possession with current management maintaining control of the debtor's day-to-day business operations, while the bankruptcy court generally approves significant business decisions. The end result of a successful Chapter 11 reorganization is the confirmation by the court of a plan of reorganization which establishes new payment terms between the debtor and its creditors.

Chapter 11 Reorganization - Click this link for more detailed information on Chapter 11

Chapter 7 Liquidation and Corporate Dissolution - Click this link for more detailed information on Chapter 7

One of the biggest mistakes that management can make is to wait too long to contact competent bankruptcy counsel. Consultation with an expert in our firm can provide you with valuable knowledge of your options and the confidence of having expert representation to solve financial problems when, or before, a crisis situation arises. Contact us today if you believe we may be of assistance to you or your business.