Chapter 11 Bankruptcy Lawyers in Astoria

Helping Businesses and Individuals Reorganize Their Debts in Astoria, NY

In the state of New York and across the country, businesses have fallen on hard times. While the economy is showing signs that it may be struggling to come back to life, some of that may be too late for some businesses, big and small, that took a hit during the COVID-19 pandemic. While some of these businesses have closed their doors, others may have legal and financial options available to them. One such option is filing for Chapter 11 bankruptcy.

Chapter 11 is known as the “reorganization bankruptcy” because it allows you to restructure your debts in a way that satisfies your creditors and gradually pay back monies owed over a period of years. During this time, your company can continue operating so that you may still turn a profit under this newly reorganized structure and meet the expectations of your creditors, shareholders, employees, and customers.

If you would like to learn more about the benefits and complexities of filing for Chapter 11 bankruptcy, please contact Ortiz & Ortiz, LLP. Our attorneys have decades of experience providing legal and financial guidance to clients in Astoria and across New York City.

Bankruptcy can be complicated and should not be pursued without being fully informed. Please reach out to our team to schedule a consultation, so we may assist you in this difficult process.

What is the Difference Between Chapter 7 and Chapter 11 Bankruptcy Code and Which is Right for You?

People often think of filing for bankruptcy as giving up. That’s not the case. While all types of bankruptcy are generally considered a last resort, some forms—like Chapter 11—are designed for restructuring debts with the goal of continuing operations.

Chapter 11 is for those seeking to resolve debts, stabilize operations, and eventually thrive again. Businesses that file Chapter 11 may need to scale back temporarily, but the goal is to rebuild stronger once their financial obligations are addressed.

Chapter 7, by contrast, is a liquidation bankruptcy. If you pursue Chapter 7, your business will not continue operating in the short term. Assets are sold off to pay creditors, and the business typically closes its doors for good.

Can a Business Survive Bankruptcy?

Yes, absolutely. But for a business to survive long-term, strategic changes are usually necessary. If poor management or unwise financial decisions caused the problems—and no lessons are learned or changes made—then it’s possible to repeat the same mistakes.

With focused leadership, cash flow from ongoing operations, debtor-in-possession (DIP) financing, and a solid reorganization plan that satisfies both creditors and stakeholders, it is possible to recover and rebuild.

If you’d like to understand what comes after filing for Chapter 11, contact our bankruptcy attorneys serving clients in Astoria and beyond.

Have Bankruptcy Laws Changed as a Result of the Pandemic?

In 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law to help those facing economic hardships caused by the COVID-19 pandemic. While individuals received stimulus checks, the broader goal of the CARES Act was to provide financial relief to small businesses across the country.

The CARES Act made it easier for small businesses to file for Chapter 11 bankruptcy by increasing the Chapter 11 Subchapter V debt limit to $7.5 million and streamlining other parts of the process.

Bankruptcy laws continue to evolve. To ensure you’re making decisions based on current state and federal law, it’s important to consult with an experienced bankruptcy attorney. Ortiz & Ortiz, LLP helps clients across New York stay informed and take the right legal steps for their situation.

Contact Ortiz & Ortiz to Speak with a Bankruptcy Attorney About Your Case

If you have questions or concerns about bankruptcy and the impact it may have on your business or personal finances, we invite you to reach out. Bankruptcy is a complex legal process and should be approached carefully. Every case is different, and our experienced team is here to help guide you through the process and toward the best possible resolution.

Ortiz & Ortiz, LLP serves clients in Astoria and throughout all five boroughs of New York City. We represent individuals, small businesses, and large corporations with respect, compassion, and a commitment to skilled legal advocacy.

To schedule a consultation, please contact us by email, through our website’s contact form, or by calling 916-796-1858 today.