Why Would a Business Consider Filing For Utah Chapter 11 Bankruptcy Protection?
Utah Chapter 11 Bankruptcy law allows businesses and certain individuals to file for bankruptcy protection. A business owner with substantial debt who wants to continue operation may need to file Chapter 11 Bankruptcy. Likewise, an individual with secured debt that exceeds $1,010,650 or unsecured debt that exceeds $336,900 may need to file Chapter 11 bankruptcy. A Utah Chapter 11 bankruptcy lawyer can assist with determining eligibility requirements.
How Does a Utah Chapter 11 Bankruptcy Work?
Similar to a Chapter 13 bankruptcy in Utah that requires repayment of all or part of the debt, the Chapter 11 bankruptcy plan must be approved by the bankruptcy court and requires the reorganization of the business and individual debt. Also, like in a Chapter 13 bankruptcy, the bankruptcy court may approve a second mortgage or HELOC Chapter 11 Lien Strip, which removes the secured debt from real property and treats it as unsecured and “stripped” from the property. Similarly, a Chapter 11 Cram Down allows the court to lower the secured debt (such as an auto loan) that has depreciated to current market value. Because Utah Chapter 11 bankruptcy law is complicated, it important for the debtor to use a Salt Lake City Utah Chapter 11 bankruptcy attorney who can guide the business owner or individual through the bankruptcy process.
One benefit of filing Chapter 11 bankruptcy is that the business owner or individual debtor can get relief from creditors and reorganize the debt into a payment plan that is feasible. Moreover, filing Chapter 11 bankruptcy can stall the foreclosure of commercial and residential property. This may give the business owner or individual an opportunity to communicate with the secured mortgage lender about payment options.
Contact a Utah Chapter 11 Bankruptcy Attorney
Contact Pearson Butler today at (800) 265-2314 to schedule a free bankruptcy consultation and take the first step toward a life free of uncertainty and debt. We have our Salt Lake City Utah Chapter 11 bankruptcy lawyer team to help.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.