Wednesday, 17 August 2016

Importance Of Having A Knoxville Chapter 11 Attorney

By Cameron S. Schippers


When debts threaten to overwhelm your business you may be able to seek help from the Bankruptcy laws. You will need to hire the services of an able Knoxville Chapter 11 attorney to help you file a petition under Chapter 11 to allow your business to reorganize its debts and come up with a repayment plan to its creditors. There are various benefits that are associated with hiring these attorneys.

The first benefit would be the automatic stay that you will get against all the suits and collections that are targeted towards your business. This will enable you to get reprieve from the pressure that your creditors were exerting on you as they tried to recover their money. This will help you build on your reorganization.

Chapter 11 offers you with the opportunity to enter negotiations with your creditors in order to restructure all the debts in a reasonable manner. The petition will make it possible to renegotiate the payment plans and interest rates on the loans. You could even reach an agreement to pay off a certain percentage as creditors will take something instead of nothing.

You will be able to continue running your business and maintain its control after filing the petition. You will be able to maintain all the relationships and reputation that you have created over the years and maintain your customers. This will enable you to continue with your business when you emerge from the bankruptcy as opposed to starting all over again.

Your lawyer will also assist you to be able to defer the financial obligations that you ought to pay regularly to a time that you will be comfortable to pay them. This includes the business rent that you can have deferred to a future date. This will give you some space to raise sufficient money to pay the creditors.

Hiring the lawyer will also enable you to be successful in recovering your possessions that would have been taken away by involuntary transfers. Your lawyer will file the petition under chapter 11 which will then entitle you to getting back the things taken away through bank levies, liens, repossessions and wage garnishments. The lawyer will help you enjoy the protection conferred by the bankruptcy laws.

Hiring a bankruptcy attorney will also help you cure defaults or accelerated obligations. When you default on your legal obligations like leases or mortgages, your lenders will accelerate the obligation and require you to pay the whole debt amount in a single lump sum. The reorganization your lawyer will help you get will return the obligations to their pre-default.




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