Chapter 11 Bankruptcy in Salt Lake City, UT

Salt Lake City, UT Chapter 11 bankruptcy

Under Chapter 11 bankruptcy in Salt Lake City, businesses can restructure debt payments and keep assets. This is in contrast to Chapter 7 bankruptcy that governs the process of a liquidation bankruptcy of businesses or individuals. A third type of bankruptcy, called Chapter 13 bankruptcy, is usually filed by individuals who do not qualify for Chapter 7 and who want to pay off their debts over a period of three to five years.

The idea behind a Salt Lake City Chapter 11 bankruptcy is that a reorganized business will be worth substantially more than the value of the assets of the business if they were sold individually. Salt Lake City Chapter 11 is a business bankruptcy that provides protections including the ability to cancel some debts, and the ability to transfer some or all of the newly reorganized company to creditors whose debts were cancelled. Another benefit of Chapter 11 is that jobs may be saved and the remaining creditors may have smaller losses than if the company is dismantled or liquidated.

Who can file Chapter 11 bankruptcy?

These businesses may file a Chapter 11 bankruptcy:

• Corporations
• Partnerships
• Sole proprietorships

Under Chapter 11 bankruptcy, the debtor in possession keeps possession of the bankruptcy assets while going through the process of reorganization. During a Chapter 11 bankruptcy proceeding, the owner of the business remains in possession until one of the following happens:

A major benefit of a Chapter 11 bankruptcy is that a debtor is allowed to keep all or a portion of its assets in Chapter 11. In contrast, under Chapter 7, a debtor can retain only a limited amount of exempt property. Under the U.S. Bankruptcy Code, businesses are not allowed to exempt property.

You need skilled bankruptcy attorneys

A skilled Salt Lake City Chapter 11 bankruptcy lawyer at Diaz & Larsen, P.L.L.C can answer all your questions about Salt Lake City business work outs and Chapter 11 in Salt Lake City. The firm has years of experience in Salt Lake bankruptcy services and we represent corporations and individuals in all types of bankruptcy proceedings. To schedule a free consultation to discuss your case, contact us today.