Call Now!
Call Us 414-326-9231 608-260-7133 Text Us 414-326-4709

Business bankruptcy: common causes, and how Chapter 11 filing can help address them, P.2

Previously, we began looking at the topic of Chapter 11 bankruptcy in the context of retail business failures. As we noted, Chapter 11 bankruptcy gives business debtors the opportunity to reorganize in order to pay off creditors.

Creditors' committees, which are appointed by the U.S. trustee, can play an important role in the process, helping to monitor the reorganization process. This is important as Chapter 11 debtors will generally act as "debtor in possession," meaning that they will operate the business and perform many of the functions a trustee would perform in other types of bankruptcy cases. 

As part of Chapter 11 bankruptcy, all parties have to work together to ensure the case is resolved in a reasonable amount of time. If this doesn't happen, a Chapter 11 case can go on for a number of years. At the end of the process, if the plan is successfully completed, the business debtor is able to have remaining debts discharged, and will hopefully be in a much better position to succeed in the long-run.

Chapter 11 bankruptcy is certainly a big step for any business to take and can have long-term consequences for the business, hopefully for the better. Bankruptcy affords businesses the opportunity to get their affairs in order, cut out unnecessary costs, to become more efficient, to redefine their business model, and generally to make the business healthier. The success of a Chapter 11 bankruptcy case is not simply in completing a reorganization plan, but in establishing a well-thought-out plan that has the long-term success of the company in mind.

Business can take advantage of the Chapter 11 bankruptcy process to identify the reasons why they ran into financial problems and to effectively address them. Doing so requires not only good business advice, but also good legal advice and the zealous advocacy of an experienced bankruptcy attorney

No Comments

Leave a comment
Comment Information
Email Us For A Response

Free Case Evaluation

* indicates required field

Miller & Miller Law, LLC
  • VISA
  • Master Cards
  • Discover
Milwaukee Office map Madison Office map Kenosha Office map

633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Office

2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Office

6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Office

Appleton Office
4321 W. College Ave.
Suite 200
Appleton, WI 54914

Phone: 920-280-3838
Appleton Office

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Office

Glendale Office
6333 N. Green Bay Avenue
Glendale, WI 53209

Phone: 414-973-8662
Glendale Office

Fax: 414-277-1303 - We also have offices in Appleton, Glendale and Brookfield to better serve you.