Manhassat Chapter 11 Bankruptcy

• Bankruptcy Solutions
• Foreclosure Solutions
• Modification & Negotiation
• Credit Card Debt Relief

Helping Clients Solve Financial Issues in the Manhassat, New York, Area

Businesses large and small have established locations in or around Manhasset, New York. While Manhasset is a smaller hamlet of just more than 8,000 persons, the town’s history, convenient transportation, and close proximity to Manhattan make it a popular place to work, live, or visit.
Companies have recognized the draw of Manhasset and more than 100 businesses have joined the Chamber of Commerce. Many luxury brands have stores in the Americana Manhasset shopping mall, including Ralph Lauren, Burberry, Louis Vuitton, Hermes, Chanel, Armani, Prada, and Brooks Brothers. These high-end shops surround other stores hoping to lure in customers on their luxury shopping sprees.
In addition to clothing stores, the Manhasset area is also home to several big box stores, such as Target, Costco, and Walmart. People also have many options for dining—from numerous small owner-operated restaurants to chains like Benihana or Cheesecake Factory. Businesses also include banks, salons, media groups, contracting companies, bakeries, and many more.
While numerous businesses continue to thrive in Manhasset year after year, some do experience financial difficulties. Sometimes, they simply encounter a bad year, while in other situations, owners can find themselves unable to pay overwhelming company debts. This can be true for large corporations and small startups alike. If you find yourself in this situation, discuss different legal options with an experienced Manhasset Chapter 11 bankruptcy law firm.
Businesses are not the only ones that may struggle financially in Manhasset. Individuals and married couples may also strive to pay their bills in the face of Manhasset’s high cost of living—about two times the U.S. average—and the median house price of about $916,000. Many people reach beyond their means to maintain homes in Manhasset, or sudden medical issues or lost jobs can throw off their entire financial situations. High income and debt levels can prevent consumers from filing for either Chapter 7 or Chapter 13 bankruptcy. Chapter 11, therefore, may prove a viable option.
While fewer parties file for Chapter 11 than other types of bankruptcy in the U.S. Bankruptcy Court for the Eastern District of New York, successful cases can provide immense financial relief for those businesses or consumers who file. This is not to say that Chapter 11 involves a simple process, as it can prove lengthy and extremely involved. You must carefully weigh your options and hire the necessary legal representation throughout this process.
At the Law Office of Ronald D. Weiss, we regularly review our clients’ situations and help them determine whether Chapter 11 bankruptcies are right for them. If they choose to file, we then guide them through every aspect of the case to give them the best chance to successfully overcome their financial issues. If you are a company owner, individual, or family and want to discuss your options for debt relief, please contact our office as soon as possible to learn more.

How Chapter 11 Works

Chapter 11 bankruptcy essentially allows filers to reorganize their debts while providing protection from creditors during the process. It does not seize property in exchange for a discharge like a Chapter 7 bankruptcy, so Chapter 11 does not force businesses to close their doors to obtain debt relief. Instead, a business may continue operations as long as it meets certain requirements.
The filer must undergo a period of court supervision and report a substantial amount of information to the court regarding finances, debts, and operations. A court must find that the filer is taking adequate steps to negotiate with creditors, reduce costs, and overall improve finances during this time. A filer that successfully completes all requirements can propose a plan of reorganization for its debts that will pay creditors during a period of time by priority of the debts. If the plan appears successfully, the court can close the Chapter 11 case while still retaining jurisdiction over the payment plan.

Who Files for Chapter 11 Bankruptcy?

Generally speaking, Chapter 11 provides a way for a business to shield itself from creditors for a period of time and resolve certain debts without shutting down. For this reason, it is a common choice among companies that wish to stay in business while they try to solve their financial problems.
Consumers, on the other hand, often file Chapter 11 out of default because they do not qualify for other types of bankruptcy. A consumer with too much income will not pass the means test for Chapter 7. Too much unsecured debt (more than $394,725) or secured debt (more than $1,184,200) will disqualify someone from Chapter 13. The only option left at that point is Chapter 11.
Chapter 11 is a costly and time-consuming process and you should feel confident that you can complete the process before you begin. You must have a thorough conversation and evaluation with a skilled Chapter 11 attorney before you ever think of filing a case.

Strict Requirements and Representation in Chapter 11 Cases

Chapter 11 bankruptcy cases have many administrative and court-mandated requirements before you may benefit from the process. You will need to file detailed monthly reports with the court, attend regularly scheduled meetings with creditors, appear for status conferences with the court, and comply with court requests and restrictions. If you wish to act outside of the court-approved operational plan, you must request permission. Any attempt to hide assets or income or otherwise provide inaccurate or incomplete information to the court can carry potentially dire consequences. Chapter 11 also places important restrictions on which debts you can and cannot pay at different times of the process.
One of the most important requirements is that the court must believe that a case will succeed in a payment plan—basically, that it is economically feasible that a filer will succeed. If you cannot demonstrate that your case is economically viable, a court can convert it into a Chapter 7 liquidation case or dismiss the case altogether, again opening your business to creditor action. In addition, you must propose a feasible plan for the court to approve. If you cannot get the court to approve a reorganization plan, the court may dismiss or convert your case.
Because of all of the complex requirements throughout the duration of a Chapter 11 case, you need to hire qualified legal representation. Always seek such representation from a law firm that knows how to best improve your chances of a positive result.

Contact a Manhasset Chapter 11 Bankruptcy Law Firm for More Information

Chapter 11 bankruptcy can confer many benefits and can even keep Manhasset companies in business with much-needed restarts. If you think that Chapter 11 bankruptcy may prove right in your situation, you need the legal team from the Law Office of Ronald D. Weiss on your side. We will closely examine the best options for you, advise you every step of the way, and help you obtain the debt relief you need. Please call (631) 271-3737 or contact us online today.