explain tn. bankruptcy chapter 11?

Question

i own a motel in nashville tn. faceing loan forcloser. need info. on chapter 11 and what it can do for me.

Answer 1

Chapter 11 is a business reorganization as opposed to a personal/wage earner reorganization under Chapter 13 or a full personal or business liquidation under Chapter 7.

The filing of any bankruptcy petition will immediately stop any court proceedings. The paperwork and document requirement is extensive, especially for a Chapter 11. At the very least you will need a voluntary petition, corporate resolutions and the list of creditors. The number of copies needed can also vary so if you don't use an attorney you need to call and find out how many originals and how many copies the court requires.

You can find the official forms here http://www.uscourts.gov/bkforms/bankruptcy_forms.html#official

As you can see they are quite extensive. Not all of the documentation is needed to file and can be done by anyone. I have also handwritten petitions to stop last minute proceedings. I highly recommend an attorney but it is possible to do on your own. Check the judicial district you will be filing in for any special requirements or call the Bankruptcy clerks office and they can tell what the initial documents have to be. You can also visit this page for a descriptions of the procedures.
http://www.uscourts.gov/bankruptcycourts/bankruptcybasics.html

You are going to pay a filing fee based on the dollar amounts involved and the number of creditors that have to be notified. When notified the creditors have to respond with a proof of claim. Once the amounts and number of creditors are known, the debtor presents a reorganization plan. In the meantime, a trustee will be appointed and the first of many creditors meetings will be held. The number will depend on the complexity of the case. The creditors can question you but more than likely the trustee will be doing most of the grilling. He is not necessarily an ally and will be very critical especially if you are lacking in the documentation.

Answer 2

Chapter 11 is a reorganization. It needs to be approved by the court. You will need a viable plan to get the business back in the black, but your creditors will be forced to accept less than what's owed. If there are any payroll taxes you'll end up paying them and the bankers will be running your business from now until you emerge from bankruptcy. If they can show that you have no way of making ends meet they can kick you out of Ch 11 into total bankruptcy and then foreclose. But timing is golden, you should see a bankruptcy attorney, stat.

Answer 3

CALL A BK ATTORNEY TODAY!!!!!!!!! Once the bankruptcy is filed THEY CAN'T FORCLOSE!!!!! Chapter 11 is reorganization, and it prevents creditors from collecting while you fix your finances. You must must must contact an attorney today and file. It costs almost nothing. If you are facing forclosure you need to call.