Chapter 11 bankruptcy is a type of bankruptcy that allows large businesses and corporations to regain control of their financial situation and reorganize their debts, so that they are once again manageable. All of this is done under the direction of a bankruptcy trustee. Chapter 11 is ideal for businesses with a significant amount of debt or a large number of creditors as there is no limit to the amount of debt a business can have when seeking this type of bankruptcy protection.
Over the years, many big businesses have filed for Chapter 11 and ended up spending months and years before finally being able to successfully emerge from bankruptcy. United Airlines was reported to have spent 1,150 days in bankruptcy, while Continental Airlines spent 1,011 days during their first bankruptcy filing and another 865 days during their second bankruptcy 7 years later. It took Lehman Brothers 1,268 days before they were able to emerge from bankruptcy, yet General Motors only required 40 days.
W.R. Grace has been crowned the bankruptcy king after having spent close to 13 years in bankruptcy. The organization, which is known for supplying specialty building materials and construction chemicals, was forced to file for bankruptcy protection after receiving in excess of 65,000 asbestos-related claims. It took all of those years to sort out each of the individual claims, however industry experts expect that there will be more claims and further litigation on the horizon.
If you or your business are considering filing for Chapter 11 bankruptcy, you may be wondering how to find a bankruptcy attorney in Long Island who can help guide you through the bankruptcy process and protect your interests along the way. Jacoby & Jacoby was established back in 1964 and has stood the test of time as being a strong advocate for debtors’ right. Our attorneys have more than 50 years combined legal experience and we have representing clients in more than 15,000 bankruptcy cases. If you want to avoid further legal complications and improve your chances of being able to avoid closing your doors, we advise you be proactive in your approach to bankruptcy.
To find out if bankruptcy may be right for you or to get started on the bankruptcy process, contact our firm and schedule a free, confidential consultation with a Long Island bankruptcy attorney today.