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Schenectady Chapter 11 Bankruptcy Lawyers

Start Your Debt Relief Journey

Many business owners may find themselves burdened by financial debt they don’t think they can recover from. The current economy has caused businesses to close or reduce their services to keep up with increasing operation costs. Small business owners may be able to reduce some of the financial pressure on them by filing for Chapter 11 bankruptcy.

Chapter 11 bankruptcy allows small business owners to consolidate or reorganize their debts and create a payment plan to pay them off in a predetermined amount of time. The process also gives business owners the opportunity to renegotiate the terms of their payments with debtors and suppliers, strengthening their business relationships.

Who Qualifies for Chapter 11?

In the state of New York, a business owner may qualify for Chapter 11 bankruptcy if they have more than $1,260,00 in secured debt and $420,000 in unsecured debt. The experienced bankruptcy attorneys at DeLorenzo, Grasso & Dalmata can help clients understand the bankruptcy process and file for it in a timely and accurate manner.

The Chapter 11 Process

If it is determined that Chapter 11 is the right choice for a business owner, they will file a petition with the court. The petition will include a financial outline listing all of their debt and all of their assets. If the petition is accepted, the process will be underway. The Chapter 11 process is as follows:

  • The Automatic Stay: An automatic stay will be put in place, which prevents all creditors from trying to collect the debts included in the bankruptcy. This stay is intended to give the business owner time to reorganize their debt.
  • Creating a Plan: The business owner will then work with their attorney to create a plan for reorganizing their debts. This plan is designed to help the business owner cancel contracts they cannot afford and reduce their overhead.
  • Meet With Creditors: The creditors that hold most of the business’ debt can meet with their attorney to learn more about the plan and to be put at ease regarding the repayment of the debts.
  • Approval: The plan will then be sent to the New York Bankruptcy Court for approval. The creditors can vote on it, and if the court feels it is in the best interest of all involved, they will approve it.

Contact DeLorenzo, Grasso & Dalmata to Get Started

The team at DeLorenzo, Grasso & Dalmata is ready to help you get the Chapter 11 bankruptcy process underway. We can provide you with all of the necessary information and guidance to get your debt restructured in a manageable way. Bankruptcy exists to help people in your situation, and there is no shame in taking advantage of it.

Contact us at (518) 299-0314 or online to schedule a free consultation.

The Benefits of Having Our Team in Your Corner

  • Experience

    Collectively, we've been practicing law for over 150 years and have been named among the most experienced law firms in the Capital Region Business Review.

  • Trial Lawyers

    We've had extensive trial experience with all types of personal injury cases, recovering millions for our clients in both settlements and verdicts.

  • Peer Recognition

    Other attorneys come to us for counsel, as we teach numerous seminars and conferences each year.

  • 24/7 Availability

    We are wholly dedicated to our clients' needs, offering availability 24/7 to take care of any legal matters.