A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a "reorganization" bankruptcy. Usually, the debtor remains “in possession,” has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money.Who can seek relief in Chapter 11 bankruptcy?
People in business or individuals can also seek relief in chapter 11. A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a "reorganization" bankruptcy.How do I obtain operating capital in a Chapter 11 bankruptcy?
When a chapter 11 debtor needs operating capital, it may be able to obtain it from a lender by giving the lender a court-approved "superpriority" over other unsecured creditors or a lien on property of the estate. 11 U.S.C. § 364. Before confirmation of a plan, several activities may take place in a chapter 11 case.Will Chapter 11 affect my lawyer’s claim?
Even though the Chapter 11 may impact how your case is heard, and the compensation available to you, your lawyer may be willing to continue to pursue the matter in the bankruptcy forum. If that is not the case, and your lawyer is not willing to pursue the claim now that bankruptcy has intervened, you may have to find someone who will.