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Delaware Chapter 11 Bankruptcy Offices

A Chapter 11 is a form of bankruptcy that allows a business to restructure or reorganize to pay off debt, while staying in operation. Werb & Sullivan has extensive experience counseling and representing clients involved in major Delaware Chapter 11 bankruptcy cases that involve sophisticated issues. This Delaware bankruptcy law firm represents debtors and creditors, both in and out-of-state, to protect their interests in a Chapter 11 bankruptcy.

Chapter 11 – Debtors Side

In Chapter 11, the debtor generally maintains considerable control over company operations as a debtor in possession. The company is reorganized to pay off debt, and creditors receive payments over a period of time that may only last months or may go on for years. Serving as counsel to debtors in possession, our Delaware bankruptcy attorneys assist debtors with the duties the debtor in possession may perform under Chapter 11, acting as trustee of the estate, including:

 

  • Objections to creditor claims
  • Rejection of leases
  • Rejection of contracts
  • Devising the Plan of Reorganization
  • Extension of the payment time period
  • Reduction of amounts owed to creditors

Crafting a Plan of Reorganization is generally complicated, and the debtor in possession must obtain a vote of approval from the creditors and confirmation from the court.

Chapter 11 offers advantages over Chapter 7 due to greater flexibility for both debtors and creditors regarding liquidation of assets. Debtors are often able to obtain better value for assets sold, and creditors can take a more active role in the liquidation process and distribution of proceeds. Chapter 11 allows debtors with real estate more time to catch up on delinquent payments or more time to sell property with equity.

Chapter 11 – Creditors side

Werb & Sullivan’s lawyers assist creditors with Chapter 11 bankruptcy in Delaware by:

 

  • Documenting monies owed and filing a proof of claim
  • Representation in Creditor 341 meetings
  • Filing Requests for Notice for close debtor monitoring
  • Filing motions to request payment of post-filing services or products
  • Reviewing the required Bankruptcy Court reports filed by debtors in possession
  • Filing motions of relief from an automatic stay
  • Evaluation of debtors’ Plans of Reorganization
  • Counsel on whether to vote in favor or challenge the Plan of Reorganization

Arrange a bankruptcy consultation

Discuss Chapter 11 bankruptcy in Delaware. Contact Werb & Sullivan online or call (302) 652-1100.