Chapter 11 Is Aimed for Businesses
Video Transcribed: Do I qualify for a Chapter 11 bankruptcy in Oklahoma?
I’m Edward Kelley, Tulsa bankruptcy attorney for Wirth Law, and I’m going to try to answer that question. So who does qualify?
Well, Oklahoma Chapter 11 is aimed at a business. It’s been made much easier with the addition of the Small Business Reorganization Act in 2019.
So if you know anything about 11s prior to watching this video and you’ve been put off at their complexity or expense, know that a small business now has tailor made statutes to help out a loan.
And I’ll go into that in a later video. But first, you got to be a business. This isn’t meant to liquidate your assets. This is a reorganization. So the idea is I’m going to find a way to save my business.
So those are the other requirements. Is there a way to daylight, a realistic one? You’re going to need to hire an attorney and go to some considerable effort to do your Tulsa Chapter 11.
And essentially, you’re going to come up with a plan. Here’s how we’re going to survive and here’s how we’re going to thrive eventually, which may involve paying your credit or substantially less than what you owe them, but paying them something. So you will come up with a plan. For example, this percentage of income is going to go to our…
Once we pay our payroll and our overhead, this percentage is going to go to this credit or this percentage is going to go to that creditor. So basically, a plan to get through whatever difficulties you’re in, your business is in. And it needs to be feasible.
So this is a common sense deal. If you’re trying to beat a dead horse or accomplish something that just can’t be done, you’re probably not going to qualify.
And although, you may go ahead and get filed, you’ll never make it through confirmation of your reorganization plan. So that’s a quick… This is a complex area, but bottom line, are you a business? And do you see a way to daylight? It’s that simple.
You’ve got a rational, realistic means to daylight, then you and your attorney can come up with a reorganization plan that has a good shot of being confirmed. So you can reach me. Again, Edward Kelly, Oklahoma Bankruptcy Attorney at Wirth Law Office, where we make law easy. And check us out on the Wirth website at makelaweasy.com