How to start a Chapter 11 bankruptcy case
There are many different businesses in New York and they provide many different products and services to people. In order to run these various businesses the owners often times have various expenses associated with the business. The expenses can include rent, purchasing the various products they need to produce their product, equipment and machinery, salaries of employees, software and many other expenses.
These expenses continue regardless of the success of the business. Sometimes due to circumstances out of the control of the owners, there is a downturn in the business and they begin to lose money. It could get to the point where the business may need to take out various loans to ensure that they can continue to run the company. If the downturn continues for a lengthy period of time, the debt could become overwhelming and companies may become buried in debt.
Information need for Chapter 11 petition
Companies who find themselves in this unfortunate position may be able to achieve a fresh start though through Chapter 11 bankruptcy. To start the process the company must file a petition in bankruptcy court.
When filing the petition the company must include certain information in order for it to be accepted. The petition must provide a schedule of the company’s assets and liabilities. It must also include a schedule of the expenditures and their current income. In addition to that information they must provide copies of any contracts or leases which they are bound by and finally a statement of their financial affairs.
Many companies in New York find themselves with debt and other obligations that can be overwhelming. This does not need necessarily mean that the company needs to close the business. They can go through the Chapter 11 bankruptcy process which can help them rid themselves of the debt and restructure the business. This can be a complicated process though and experienced attorneys may be able to guide one through the process.