FILING CHAPTER 11 BANKRUPTCY IN INDIANA
An Indiana Chapter 11 can be a powerful “custom” debt reorganization tool that is available to corporations, businesses, and complex debtors who have very high amounts of assets and debts. Many times, small Indiana-based corporations will file Chapter 11 to see if their unsecured creditors will take a low percentage of repayment with new terms. Then, they attempt to use Chapter 11 to have their primary secured lender(s) claims negotiated down to market value. Essentially, Chapter 11 in Indiana is used to allow a “better situation” for both the creditors and corporation: (1) the corporation (or other business filer) is allowed too keep operating while (2) the creditors on the case will receive MORE on their modified terms of the Chapter 11 plan than what they would have received if the Corporation (or other business filer) would have just liquidated under Chapter 7 or closed their doors.
INDIANA CHAPTER 11 BANKRUPTCY LIQUIDATION
Not all Chapter 11 cases in Indiana are used for the purposes of “Reorganization.” Chapter 11 can also be filed in order to have better control of how the business-filer is liquidated (the assets of the corporation distributed to creditors and rightful parties). Also, many Chapter 11 cases that start out as a hopeful “re-organizer” are moved into a liquidation situation either (1) by choice after the practical difficulties of continued operation are realized or (2) by force after the unlikelihood of successful reorganization is discovered by the court and the creditors during Chapter 11 case.
INDIANA CHAPTER 11 BANKRUPTCY REORGANIZATION
Many times income and operations are developed and consistent in a business, but the business is saddled with too much debt that it services in order to continue its operations. This debt can destroy what would otherwise be a successful Indiana Business. In these situations, it is especially beneficial for the corporate entity to file under Chapter 11 to “reorganize” their debts. An Indiana Business can be run into the ground just from it’s debt serving alone. This would be a bad situation for the creditors and the business alike. Reorganization under Chapter 11 can create a bright future, whereas NO FUTURE could have existed before with the corporation’s original debt obligations.
CHAPTER 11 CUSTOM USES IN INDIANA
It is important to keep in mind that an Indiana Chapter 11 is the most “custom” form of bankruptcy, and there are a variety of ways that Chapter 11 can be used to make a better outcome to an undesirable situation. Therefore, Chapter 11 can be thought of as the “Flag-Ship” of the bankruptcy fleet of options. It restores productivity at some level for all parties and is a powerful mechanism even at a societal level for correcting economic misfortunes and long-term mistakes. Indianapolis Chapter 11 bankruptcy attorneys can use Chapter 11 for a variety of advanced, “custom” uses.
WE ARE LOCATED NORTHWEST OF INDIANAPOLIS. IF YOU NEED AN INDIANAPOLIS CHAPTER 11 BANKRUPTCY ATTORNEY, CALL US FOR A FREE CONSULTATION: 317-769-2244