My name is Ed Danowitz, with the law firm
of Danowitz and Associates. People often ask me why should I file a chapter
11 case? Well, you should file a chapter 11 case if you have assets that you might lose
to creditors or through a chapter 7 case. One of the positive aspects of filing a chapter
11 case, is the moment you file a chapter 11 case an automatic stay prohibits any creditor
from trying to collect, garnish, levy, or seize any of your assets. And if they violate
that provision they can be sanctioned by the court. That is the single biggest weapon to
filing a chapter 11, to stop your creditors from interfering with your business and your
finances. Why should you file a chapter 11? If you have
disputes with your creditors, you can usually bring those disputes to a user friendly forum
to chat in the bankruptcy court, where your disputes can be resolved much less expensively
than through civil litigations and various jurisdictions. Why should you file a chapter 11? You will
continue to retain control over your business for a period of time and you will be given
the opportunity to present a plan that your creditors can accept to take partial payment
for what they’re owed, or in some cases to pay your taxes, your secured creditors over
terms that are more favourable to you. Please call our attorneys at Danowitz and
Associates so we can discuss your needs to see if chapter 11 bankruptcy is appropriate
for you or your business.