Before filing for bankruptcy, business owners should explore every available out-of-court option for dealing with the debt. Going to bankruptcy court can be costly, and it is important to get comprehensive legal advice before taking that step.
When there are multiple creditors in Chapter 11 bankruptcy, each creditor has its own interests to protect. However, banding together as a committee is often advantageous to unsecured creditors and helps them maximize the amount they recover.
Whether you're a business owner with heavy debt, a creditor seeking to collect, or a bankruptcy trustee, it is important to know how the Chapter 11 bankruptcy process works and how the case will be monitored by the court.
Bankruptcy and other insolvency-related matters can be extremely complex, especially if there are many parties involved. Whether you're a creditor, debtor or trustee, a single slip-up could expose you to costly liability, and it is crucial that you have experienced legal counsel to identify the important issues and aggressively protect your interests.