Florida Chapter 11 Bankruptcy Attorney | Stiberman Law, P.A.

Written by: Chapter 11 Florida bankruptcy lawyer, Robert Stiberman – Last Updated February 6, 2024.

Navigating the complexities of Chapter 11 bankruptcy can be daunting for businesses and individuals with significant assets. Chapter 11 bankruptcy allows a business to reorganize its debts while continuing operations, providing a lifeline to get back on track. This type of bankruptcy is crucial for those who need to restructure without shutting down completely.

In Florida, an experienced Chapter 11 bankruptcy attorney can be indispensable, guiding you through the legal labyrinth and helping to craft a reorganization plan that prioritizes your financial recovery. We understand the challenges that come with overwhelming debt and the pressure to keep your business afloat.

Our team is dedicated to offering professional support throughout your Chapter 11 journey. By working with a knowledgeable Florida Chapter 11 bankruptcy attorney, you can take crucial steps toward financial stability and a brighter future for your business.

Chapter 11 Business Bankruptcy Lawyer in Florida

Chapter 11 bankruptcy often grabs headlines, typically associated with large corporations facing financial distress. However, its relevance extends beyond corporate giants; it’s a crucial avenue for small businesses and individuals seeking bankruptcy protection.

Your Experienced Chapter 11 Bankruptcy Lawyer

Robert Stiberman is a distinguished business bankruptcy lawyer renowned for his experience in navigating complex legal matters throughout Florida. With authorization to practice law across the state, Mr. Stiberman holds admission to the United States District Court for the Southern, Middle, and Northern Districts of Florida, solidifying his jurisdictional prowess. Mr. Stiberman represents bankruptcy clients throughout the state of Florida.

Mr. Stiberman earned his Juris Doctorate from the University of Miami School of Law and has been a member in good standing of the Florida Bar since 1998, maintaining an impeccable standing within the legal community. Moreover, he brings a wealth of experience as a former Supreme Court Certified Mediator, augmenting his ability to facilitate constructive negotiations and mediations. This unique background enhances his effectiveness in guiding clients through the intricate landscape of Chapter 11 proceedings.

In Chapter 11 cases, adept negotiation skills are paramount, as attorneys must engage with many stakeholders, including creditors and suppliers, to secure favorable terms for debt repayment and potentially mitigate losses. Robert’s honed negotiation insight not only helps in averting protracted litigation but also fosters agreements that position debtor companies for enhanced resilience and financial stability post-bankruptcy.

With over 15 years of dedicated service, Stiberman Law has consistently delivered comprehensive representation to Florida bankruptcy clients, earning a sterling reputation for its unwavering commitment to achieving optimal outcomes.

Understanding Chapter 11 Bankruptcy

Chapter 11 bankruptcy is a legal process designed to facilitate the reorganization of a business or individual’s finances while allowing them to continue operations. Unlike Chapter 7, which involves liquidation, and Chapter 13, which focuses on personal reorganization, Chapter 11 is primarily utilized by businesses but can also be employed by individuals with substantial assets and debts.

Under Chapter 11, the debtor, whether a business or individual, retains control over their operations while developing a plan to repay creditors over time. This plan, subject to court approval, outlines how debts will be restructured, assets liquidated, and payments distributed among creditors.

Source: https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics

Who Can File for Chapter 11 Bankruptcy?

Chapter 11 bankruptcy is an option available to a wide range of entities. Both large corporations and small businesses can seek relief under Chapter 11.

Any type of business entity, such as corporations, partnerships, and sole proprietorships, can file for Chapter 11. This includes everything from family-owned businesses to multinational corporations.

Eligibility Requirements

• Credit Counseling: Individuals must complete credit counseling with an approved agency within 180 days before filing unless the court waives this requirement.
• Good Faith Filing: The bankruptcy petition must be filed in good faith, meaning the business must have a genuine need for reorganization.

Chapter 11 is designed to help businesses reorganize their debts while continuing their operations. Both large and small businesses can use this bankruptcy option to restructure their financial obligations over time.

How Chapter 11 Works

Filing for Chapter 11 bankruptcy involves several steps and requires careful attention to detail. Here is a step-by-step guide on the process.

Filing the Petition

A Chapter 11 case starts with the filing of a petition in the bankruptcy court located where the debtor maintains domicile, residence, or primary business location. The debtor may be a business or an individual. In some instances, the petition me be an involuntary petition filed by creditors. Source  11 U.S.C. §§ 301, 303. If the debtor is an individual, the Debtor must have received credit counseling from an approved agency. Source 11 U.S.C. §§ 109.

You start by filing a petition in the bankruptcy court. This petition can be voluntary (filed by the debtor) or involuntary (filed by creditors). The filing must be done in the jurisdiction where the debtor’s principal place of business is located.

Documentation

Next, we need to gather and submit various documents:

• Schedules of assets and liabilities
• Current income and expenditures
• Statement of financial affairs
• Executory contracts and unexpired leases

Automatic Stay

Once the petition is filed, an automatic stay takes effect. This means creditors must stop any collection activities. The stay gives you breathing room to reorganize your finances without immediate pressure from creditors.

Debtor in Possession

In Chapter 11 bankruptcy, you often remain in possession of our assets. You continue to operate our business as usual, but with court supervision. You must comply with reporting requirements and may need court approval for any major business decisions.

Plan of Reorganization

You then propose a plan of reorganization. This plan outlines how you intend to repay your debts over time. Creditors whose rights are impacted by this plan will vote to accept or reject it. Approval from the court is required.

Legal Requirements

Filing for Chapter 11 requires adherence to strict legal requirements. It’s crucial to have a knowledgeable attorney to navigate these complexities. Proper legal representation ensures that all documentation is accurate and timely, increasing the chances of a successful reorganization.

Filing chapter 11 is typically more more expensive than filing for Chapter 7, or Chapter 13. As of February 7, 2024, a debtor must pay a Chapter 11 case filing fee of $1,1167 and a $571 miscellaneous administrative fee. Source Chapter 11 – Bankruptcy Basics.

Upon filing, the debtor automatically assumes the role of “debtor in possession”. 11 U.S.C. § 1101. As a debtor in possession, the debtor maintains possession control of their assets until the case is confirmed, dismissed, or converted to chapter 7. There may be instances, such as the debtor’s breach of fiduciary duties,  where a chapter 11 trustee is appointed. Source 11 U.S.C. § 1107(a).

The debtor is required to file a disclosure statement and a plan of reorganization detailing how creditors will be treated, with impaired creditors voting on the plan. The court then holds a confirmation hearing to determine whether to approve the plan. Source 11 U.S.C. § 1125.

Throughout the process, our attorney will guide you, ensuring that you meet all legal requirements and protect your interests.

Exploring Subchapter V of Chapter 11 Bankruptcy

Subchapter V is a form of business bankruptcy that offers a streamlined bankruptcy process tailored to the needs of qualifying small businesses. It designed to expedite the Chapter 11 bankruptcy process for small businesses with debts totaling less than $7.5 million.

Source: The Small Business Reorganization Act of 2019 (SBRA).

Key Features of Subchapter V

Unlike traditional Chapter 11 proceedings, Subchapter V imposes fewer requirements and administrative costs on small business debtors. Some key features of Subchapter V include:

• Expedited Timeline: Subchapter V accelerates the bankruptcy process, allowing small businesses to develop and confirm a reorganization plan within a shorter timeframe.
• Ownership Retention: Small business owners can retain ownership of their businesses under Subchapter V, provided they propose a feasible reorganization plan that treats creditors fairly.
• Elimination of Creditors’ Committees: Unlike traditional Chapter 11 cases, Subchapter V eliminates the requirement to form official committees of unsecured creditors, reducing administrative expenses.
• Cost-Effectiveness: Subchapter V reduces administrative costs and legal fees, making the bankruptcy process more accessible and affordable for small businesses.

Role of the Bankruptcy Court

The bankruptcy court plays a crucial role in Chapter 11 proceedings. It oversees the entire process to ensure that it follows legal requirements and protects all parties involved.

The court’s primary responsibility is to monitor the debtor’s reorganization plan. This plan outlines how the debtor will repay creditors and regain financial stability. The court ensures the plan is feasible and fair.

Another key role of the court is to protect the debtor from legal actions by creditors. Once a business files for Chapter 11, an automatic stay takes effect. This prevents creditors from pursuing collection efforts, giving the debtor time to reorganize.

The court must also approve any significant actions taken by the debtor. This includes decisions to sell assets, borrow money, or make large expenditures. Court approval ensures these actions align with the reorganization plan.

One of the major challenges businesses face during Chapter 11 is creating a viable reorganization plan. The complexity of these cases can be daunting, making it essential to have experienced legal counsel.

Potential risks include the possibility of the court converting the case to Chapter 7, where assets are liquidated. This happens if the reorganization plan is not achievable. Businesses must navigate these risks carefully.

It’s vital for you to have skilled attorneys guiding you through the process. Their experience can help mitigate risks and increase the chances of a successful reorganization.

Our Business Bankruptcy Florida Chapter 11 Lawyers Can Help You

As an experienced Chapter 11 Florida bankruptcy lawyer, Robert Stiberman plays a crucial role in helping clients formulate effective reorganization plans, negotiate with creditors, and navigate the legal intricacies of bankruptcy court. Stiberman’s commitment to providing personalized and strategic legal counsel sets him apart.

The consultation is confidential and we respect your privacy. Please review our privacy policy. Although we provide information on this website, it is intended solely as information and not as legal advice. Because for chapter 11 can have serious implications,  it is important to consult with a lawyer before taking any action.

Contact a Chapter 11 Florida Bankruptcy Lawyer

If you’re considering Chapter 11 Bankruptcy, contact us today to schedule your personalized consultation with a bankruptcy lawyer at Stiberman Law. The consultation is completely free. We are available to schedule a consultation Mon- Friday from 9 am to 6 pm. 

Filing for Chapter 11 Bankruptcy in Florida

Filing for bankruptcy can be complex. There are multiple types of bankruptcy. Finding the right one to solve your challenges can be tricky. You need to consider whether you can make payments in the future, the value of your current assets and the types of debts you wish to resolve.

Chapter 11 Can Give Debtors More Control

As explained by business bankruptcy lawyer Robert Stiberman, Chapter 11 not a liquidation. This type of bankruptcy is a restructuring of debts, with the goal of minimizing disruption.

Debtors filing Chapter 11 bankruptcy will be required to show how they plan to better manage their debts in the future. They may be able to retain control of their assets throughout the bankruptcy.

For businesses filing Chapter 11, they need to present a workable plan to their debtors that shows how they can turn their business around. This could include contract renegotiations with customers or seeking new sources of revenue.

Chapter 11 Accommodates Larger, More Complex Debts

One reason an individual debtor may not qualify for a Chapter 13 bankruptcy is that their total secured debt exceeds $1,149,525, and/or their total unsecured debt exceeds $383,175.

Chapter 11 bankruptcy does not have these limitations. It is specifically designed to accommodate substantial debts wrapped up in a variety of financial instruments.

Chapter 11 Provides Longer Repayment Windows

Another reason that small businesses and individuals may choose to file a Chapter 11 bankruptcy is because of the increased flexibility in repayment terms. For example, a Chapter 13 bankruptcy requires that mortgages on a rental property be repaid within 60 months. Even with a lower loan balance and lower interest rate (negotiated during the bankruptcy), this is a tight window to pay off a property.

Chapter 11 bankruptcies do not have this 60 month requirement. There are other examples where a specific type of bankruptcy filing will better serve your needs. Your best possible bet is to sit down and discuss your situation with a Chapter 11 bankruptcy lawyer. Even if Chapter 11 isn’t the best fit, we can work together to find a solution that makes the most sense.

Chapter 11: Disposable Income Calculations

The IRS has a standard formula for calculating disposable income. You can click here to view Official Form B 22C2. It shows how the calculation is completed.

Chapter 11 filings use a different standard that may be more favorable to the debtor.

In any bankruptcy filing, you are going to be faced with a series of forms and questions. Answering incorrectly, or filing the wrong form can have a significant impact on the structure of your bankruptcy.

This is one reason, among many, hiring an experienced Chapter 11 bankruptcy lawyer to handle your filing will benefit you. Our experience allows us to focus on the things that matter, giving our clients the best possible chance at a better tomorrow.

Remember, when you hire an experienced attorney to handle your bankruptcy filing, you may avoid costly errors. Based on some of the “do it yourself” filings we’ve seen work their way through the court system, it can be cheaper to hire an experienced attorney.

Explore Your Options with a Florida Chapter 11 Bankruptcy Lawyer

We understand that the need to file bankruptcy can come from a variety of factors, many of which are outside your control. We’re not here to judge you. We’re here to provide you with reliable information, based on the specifics of your situation.

Frequently Asked Questions

Chapter 11 bankruptcy is a complex legal process primarily used by businesses to reorganize their debts and finances while continuing operations. Here are some frequently asked questions (FAQs) regarding Chapter 11 bankruptcy:

What is Chapter 11 bankruptcy?

• Chapter 11 bankruptcy is a form of bankruptcy under the U.S. Bankruptcy Code that allows businesses to restructure their debts and operations while remaining operational. It offers a mechanism for businesses to reorganize and potentially emerge from financial distress.

Who can file for Chapter 11 bankruptcy?

• Businesses such as corporations, partnerships, and LLCs typically file for Chapter 11. However, individuals with significant debts or assets may also file under Chapter 11 if they don’t qualify for other bankruptcy chapters, such as Chapter 7 or Chapter 13.

What are the benefits of filing for Chapter 11 bankruptcy?

• Chapter 11 provides several benefits, including restructuring debt, renegotiating contracts, selling assets, and continuing operations under court supervision. It also offers protection from creditors’ collection efforts while the reorganization process takes place.

How does the Chapter 11 process work?

• The Chapter 11 process begins with filing a petition in bankruptcy court. The debtor (the business or individual filing for bankruptcy) becomes a debtor in possession and assumes the responsibilities of a trustee. The debtor then creates a reorganization plan outlining how it will address its debts and obligations. Creditors vote on the plan, and if approved by the court, it becomes binding on all parties.

What is a reorganization plan?

• A reorganization plan outlines how the debtor intends to restructure its debts and operations to become financially stable. It typically includes provisions for debt repayment, asset sales, renegotiation of contracts, and other measures to improve the debtor’s financial situation.

Can the debtor continue operating the business?

• Yes, typically, the debtor remains “in possession” and can continue to operate the business. They act similarly to a trustee and may borrow new money with court approval.

What happens to creditors in Chapter 11?

• Creditors have the opportunity to vote on the reorganization plan. The plan outlines how the debtor will pay back the creditors over time.

How long does Chapter 11 bankruptcy last?

• The length of a Chapter 11 case varies depending on the complexity of the debtor’s financial situation and the effectiveness of the reorganization efforts. Some cases may be resolved relatively quickly, while others can take several years.

What happens to existing contracts and leases in Chapter 11 bankruptcy?

• Existing contracts and leases may be assumed, rejected, or renegotiated during the Chapter 11 process. The debtor has the option to continue performing under favorable contracts and leases or reject those that are burdensome or no longer economically viable.

Can a business continue to operate during Chapter 11 bankruptcy?

• Yes, one of the primary goals of Chapter 11 bankruptcy is to allow the debtor to continue operating while it restructures its debts and finances. However, significant business decisions may require court approval, and the debtor must comply with specific reporting and disclosure requirements.

These are just a few common questions about Chapter 11 bankruptcy. It’s essential to consult with a qualified bankruptcy attorney or financial advisor for specific guidance tailored to your situation.

Why is chapter 11 so expensive?

Chapter 11 bankruptcy is often more costly than other types due to its complexity, involving extensive negotiations, reorganization plans, and court proceedings. Learn more at: The High Costs Of Chapter 11 Bankruptcy: Factors Contributing To Expensive Proceedings.

Recent Chapter 11 Developments

Commercial Chapter 11 Bankruptcies Soar 118% in February

In February 2024, the number of commercial chapter 11 bankruptcy filings increased by 118% compared to the same period in February 2023. This significant growth in commercial chapter 11 filings was primarily driven by a substantial number of related filings in two major commercial chapter 11 cases.

Overall, total commercial filings in February rose by 48% from the previous year. Small business filings, represented as subchapter V elections within chapter 11, experienced a 78% increase, rising from 120 in the prior year. The total number of bankruptcy filings in February marked a 22% increase compared to February 2023. This marks the 19th consecutive month of year-over-year increases in total, individual, and commercial bankruptcy filings.

Source: American Bankruptcy Institute – March 4, 2024 Press Release.

Experienced Chapter 11 Bankruptcy Attorneys in Florida

If you need to stave off the foreclosure through Chapter 11 Bankruptcy, our attorneys can help you.

We understand that the need to file bankruptcy can come from a variety of factors, many of which are outside your control. We’re not here to judge you. We’re here to provide you with reliable information, based on the specifics of your situation.

Free Initial Consultation

Schedule a Free Consultation with a Chapter 11 Bankruptcy Lawyer

You need real answers that you, your family and your business can count on. A google search isn’t enough. Give us the opportunity to answer your questions as part of a free, no-obligation consultation.

Don’t wait until you’re already in over your head with legal procedures and court filings. Let us honestly assess your situation, with the benefit of our experience. It all starts with a phone call.

Your Trusted Chapter 11 Bankruptcy Lawyer

If you are a small business owner in Florida struggling with debt, Stiberman Law can help you navigate the bankruptcy process successfully. With extensive experience helping small businesses, our team of attorneys provides compassionate and effective legal guidance during this difficult and emotional time.

Stiberman Law has helped numerous small businesses in Florida file for Chapter 7 and Chapter 11 bankruptcy, as well as the newly introduced Subchapter V bankruptcy protection. Our team has a deep understanding of the bankruptcy process, including the complexities involved in reorganizing debt and negotiating with creditors.

Our attorneys are particularly knowledgeable about Subchapter V bankruptcy protection and can guide small business owners through the process, from determining eligibility to developing a feasible reorganization plan and negotiating debt repayment terms with creditors.

Stiberman Law is committed to providing personalized service to each of its clients. We take the time to listen to our clients’ concerns and develop tailored solutions to meet their needs, understanding that every small business is unique. Our attorneys are dedicated to helping small businesses in Florida regain their financial footing and get back to doing what they do best – running their businesses.

Don’t hesitate to contact Stiberman Law if you are a small business owner in Florida struggling with debt. Our team of attorneys can help you explore your options and find the best path forward for your business.