Chapter 11 Shreveport Business Bankruptcy Lawyer & Business Bankruptcy Law Firm
What is a Chapter 11 Business Bankruptcy? Who would file a Chapter 11 bankruptcy in Shreveport?
A bankruptcy case filed under Chapter 11 of the U.S. Bankruptcy Code will generally be filed by a Shreveport area business, although this chapter is also available to individuals. While a business may choose to file a Chapter 7 bankruptcy (liquidation), it may not file a Chapter 13 bankruptcy (reorganization) because these are reserved for individuals. But it is very common for a business to want to reorganize its debts and stay in business rather than filing a Chapter 7 and liquidating all of its assets. Chapter 11 bankruptcies are available to Caddo Parish businesses for this purpose (i.e., staying in business and restructuring the company's debts). Whether you are a small business or a large business, debt can beome overriding.
There are some famous Chapter 11 bankruptcy cases filed by some high profile companies: Lehman Brothers in 2008 (during the Wall Street collapse); Washington Mutual Bank which was quickly acquired by Chase Bank; and the Enron bankruptcy which brought to light unlawful accounting practices. It doesn't take unlawful accounting practices to get a business, even a small business, into trouble ... the current economy combined with poor bookkeeping and/or lack of financial planning can cause problems and conceal a looming financial crisis for Shreveport businesses.
A business does not have to be completely insolvent before it is allowed to file a Chapter 11 bankruptcy case. Accountants and bookkeepers in the Shreveport, Caddo Parish, Louisiana, area can provide invaluable financial support to businesses and provide guidance of when it might be time to seek the advice of a qualified Shreveport Chapter 11 bankruptcy attorney. Some Shreveport area financial professionals include:
Bernard Spencer E JR CPA
333 Texas 1525 Street, Shreveport, LA 71118
Muslow and Muslow LLC
1804 Centenary Blvd, Shreveport, LA 71101
Agee And Agee P C
5925 Line Avenue, Shreveport, LA 71106
Thomas Group LLP
820 Jordan Street, Shreveport, LA 71101
Chapter 11 bankruptcies may also be filed by individuals in Shreveport and Caddo Parish (an individual may be an unmarried person, a married person filing alone, or a married couple).
The main reason an individual or married couple would want to file a Ch. 11 bankruptcy instead of a Ch. 13 case is because their debts may exceed the limits allowed in chapter 13 bankruptcy cases. Although similar to ch.13, a Shreveport Chapter 11 bankruptcy is much more complicated and requires the advice of a qualified Shreveport Bankruptcy Attorney.
Common types of creditors in Shreveport, Louisiana, with whom a person may have very high debts that disqualify them filing a chapter 13 bankruptcy:
Banks and Mortgage Companies such as Commercial National Bank in Shreveport (333 Texas Street, Shreveport, LA 71101) and Family Federal Savings and Loan Association (1701 North Market, Shreveport, LA 71107).
Car Dealers such as Wray Ford Inc (2851 Benton Road, Shreveport, LA 71118 (318) 686-7300) and Auto Showcase (8955 Mansfield Road, Shreveport, LA 71118 (318) 686-9009).
Jewelry Stores such as Wilkerson's Jewelry (2530 Bert Kouns Industrial Loop, Shreveport, LA 71118 (318) 688-1195) and Mauldin's Jewelry (880 Bert Kouns Industrial Loop, Shreveport, LA 71118 (318) 686-0786).
The Basics of a Chapter 11 Shreveport Bankruptcy:
A qualified Shreveport Bankruptcy Law Firm will have the expertise to guide their clients through the Chapter 11 bankruptcy process. Here are the common steps for Chapter 11 cases filed in Shreveport and Caddo Parish, Louisiana (but they may vary depending on specific circumstances):
► The case begins when the petition is filed with the bankruptcy court. Caddo Parish cases are filed with the Louisiana Western Bankruptcy Court located in the 300 Fannin Street, Suite 2201, Shreveport, Louisiana 71101 (318) 676-4267.
► The filing fee of $1,000 and administrative fee of $39 are paid.
► Upon filing of the petition and pursuant to Section 1107 of the bankruptcy code, the debtor assumes the responsibilities normally assigned to a trustee (as in a Chapter 7 or Chapter 11 case) and is known as "debtor in possession." This means the debtor may continue to operate the business, including paying employees.
► The debtor in possession also has the responsibility of filing monthly operating reports with the Court and the U.S. Trustee, filing and paying taxes, and creating a plan for reorganization.
► Although the debtor is given the authority to continue to operate the business in the ordinary course of business, the debtor is expected to do so in a manner in the best interest of all concerned. The interest of the creditors is protected by the formation of various creditor committees. These committees will have much influence on the reorganization plan being developed by the debtor in possession.
► The plan is implemented.
► Confirmation of the plan can also mean discharge of debts incurred prior to confirmation, but there are many variables including whether the debtor is an individual or a business. Your Shreveport Bankruptcy Attorney will advise you on the effects of confirmation of your plan.
Contact a Shreveport Bankruptcy Attorney for advice and consultation about filing a Ch. 11 Caddo Parish Bankruptcy.
Serving clients throughout Northwestern Louisiana, including, Allendale, Barksdale AFB, Blanchard, Bossier City, Cedar Grove, Cooper Road, Fairfield Historic District, Highland Historic District, Ledbetter Heights, North Highlands, Shreveport, Southern Hills, Summer Grove, and other communities in Bossier Parish and Caddo Parish.