Bankruptcy Attorney Jacksonville - Affinity Law Firm

The most common form of bankruptcy for businesses who wish to remain operative while they restructure their current debts, Chapter 11 bankruptcies are a useful tool to remain afloat during times of business duress. 

This type of bankruptcy is available to any person and any business to include railroads; but is not available to stockbrokers, commodity brokers, insurance companies, and banking institutions (except an uninsured state member bank).

Chapter 11 is primarily used by businesses (e.g. partnerships, corporations, LLC’s, etc.) because it is a system setup to accommodate individuals with highly complex affairs, large debts, armies of creditors, employees, and shareholders. In most cases, Chapter 11 should only be used by “real people” when they don’t qualify under Chapter 13 because they’ve exceed the statutory debt limit.

Chapter 11 is typically used to reorganize a business, which may be a corporation, sole proprietorship, or partnership. A corporation exists separate and apart from its owners, the stockholders. The chapter 11 bankruptcy case of a corporation (corporation as debtor) does not put the personal assets of the stockholders at risk other than the value of their investment in the company's stock. A sole proprietorship (owner as debtor), on the other hand, does not have an identity separate and distinct from its owner(s). Accordingly, a bankruptcy case involving a sole proprietorship includes both the business and personal assets of the owners-debtors. Like a corporation, a partnership exists separate and apart from its partners. In a partnership bankruptcy case (partnership as debtor), however, the partners' personal assets may, in some cases, be used to pay creditors in the bankruptcy case or the partners, themselves, may be forced to file for bankruptcy protection.

If you think that Chapter 11 bankruptcy is an option for you, contact Affinity Law Firm for a consultation.