|CHAPTER 11 BANKRUPTCY
CHAPTER 11 BANKRUPTCY - is the most common bankruptcy for businesses to reorganize their debt. This type of bankruptcy, in most instances, is more complex than the consumer types of bankruptcies. Businesses that want to stay in business can obtain bankruptcy protection from their creditors as they reorganize their debt obligations through payment plans, negotiations, and liquidation. The business will typically be its own Trustee in bankruptcy, and will be called a "Debtor in Possession" or "DIP." Sometimes a committee of creditors will petition the court to appointment a Chapter 11 Trustee to run the business during the plan of reorganization instead of the DIP. A Plan of Reorganization will be proposed to creditors by the business, which the creditors vote to accept or reject, objections may be made, negotiations can occur, agreements and compromises can be made, and once that happens, the Judge can approve the proposed plan for the business to reorganize itself.
SMALL BUSINESS CHAPTER 11 BANKRUPTCIES - In 2005 a new Small Business case Chapter 11 as defined by 11 U.S.C. Section 101(51C) was created under BAPCPA. And in 2019 a Subchapter V Chapter 11 bankruptcy was created under the Small Business Reorganization Act ("SBRA"). These two sub-types of small business bankruptcies were created to streamline processes and reduce costs compared to a traditional Chapter 11 bankruptcy. These have greater flexibility in negotiating restructuring plans with creditors. The two types of small business bankruptcies have accelerated deadlines and speedier confirmation of a plan of reorganization.
These two types of small business bankruptcies have different eligibility requirements based on the combined secured and unsecured debts (that are non-contingent liquidated) as of the date of the bankruptcy filing.
<> For a small business case a small business debtor is a person engaged in commercial or business activities (including any affiliate of such person that is also a debtor under this title; excluding the primary activity of owning single asset real estate) with combined debt of not more than $3,024,725 (this dollar figure will adjust in three years on 4/1/2025) and not less than 50 percent of such debt arose from the commercial or business activities of the debtor.
<> For a Subchapter V (Small Business Reorganization) the debt eligibility is not more than $7,500,000 of combined debt (noncontingent liquidated) and and not less than 50 percent of such debt arose from the commercial or business activities of the debtor. Please be warned that this debt limit was originally only $2,725,625 when enacted and it was temporarily increased to $7,500,000, but will expire on June 21st, 2024. After which, the debt ceiling will revert back to the original $2,725,625 unless future legislation adjusts it again.
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WHAT BANKRUPTCY CAN DO FOR YOU ?
BANKRUPTCY WILL STOP:
• MEDICAL COLLECTIONS
• CREDIT CARD COLLECTIONS
• TAX COLLECTIONS
• OTHER TYPES OF COLLECTIONS
• HARRASSING PHONE CALLS
• FINANCIAL DISTRESS
BANKRUPTCY CAN PROTECT YOUR:
• VALUABLE ASSETS
• FINANCIAL FUTURE
• CHILDREN'S FUTURE
• PEACE OF MIND
CALL US TODAY, WE CAN HELP !
CALL NOW AT - (503) 808-9032
TEXT US NOW - (503) 994-1070
BEAVERTON (Main Office)
12655 SW Center St., Suite 300
Beaverton, Oregon 97005
* By Appointment Only *
Located in the 6-story CASCADE PLAZA WEST building (a white building with blue roof segments) in Beaverton near Hwy. 217, SW Canyon Rd., and Cedar Hills Blvd. The building is on the corner of SW Center St. and Hall St. Only three (3) blocks from the Beaverton Central Max train stop (Blue line), near the "Beaverton Round."
Parking is free. Handicap access ramps and elevators located at the ground floor entry.
CALL US TODAY TO START LIVING DEBT FREE!
CALL NOW AT: (503) 808-9032
TEXT US AT: (503) 994-1070
*** WE CAN HELP ***
|Reviews, Rating and Affiliations
I must say Scott is they best to work with, he has gone way out of his way to help my wife and I with a chapter 7, he was amazing to work with, if you plan to file you must check with Scott first, he even has 2 locations, Scott would get 10 stars if it would let me rate that high.
- Rick T.
We hired Mr. Hutchinson in early 2011 to represent us in filing for bankruptcy. I had interviewed two other attorneys in Portland prior to selecting him. Mr. Hutchinson is a very professional and knowledgeable attorney. The filing process went very smoothly for and we were discharged successfully. We are very happy that we found him.- Jody H.
No one wants to be in the position to have to file for bankruptcy. It's humiliating no matter what the circumstances. My experience with Mr. Hutchinson was excellent. I was made to feel like a person and not just another case. Not only was I filing for bankruptcy, to top it off my case was extremely difficult (which I am told is highly unusual) as I was right on the border between being able to file a 7 or 13. It created a lot of additional work and hassle for Mr. Hutchinson. Regardless of how frustrating that may have been, I was consistently treated with respect, patience and professionalism throughout the entire process. He went more than the extra mile for me. If you find you are in a position to file bankruptcy I would strongly suggest Mr. Hutchinson's services.
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