During a Chapter 11 bankruptcy case, a trustee is assigned to help the debtor reorganize their debt. During the process all collection activities will stop until the bankruptcy case is settled. The debtor and their trustee will try to come up with a plan for paying back creditors in a timely manner. In some cases, creditors will also present plans for debtors to pay back their debts. Any plan that is presented in a Chapter 11 bankruptcy case must be approved by the creditors and the U.S. Bankruptcy Court.
When a plan is set in place, the debtor will be responsible for abiding by the terms of the plan and repaying debts according to a set schedule. In some cases, debtors may be given multiple years in order to pay off their debts.
A San Antonio bankruptcy attorney can help you sort out the details of your financial reorganization if you determine that your business must file for Chapter 11. To learn more about this type of bankruptcy, contact the Malaise Law Firm to set up your consultation.