Bolinske Law represents companies filing for protection under Chapter 7 or 11 of the Bankruptcy Code. We work with our business clients to determine the proper course of action when making the decision to file for bankruptcy.
In some cases a business thinking about filing bankruptcy would be better served by working with creditors to restructure the loan obligations instead of filing for bankruptcy. If a loan workout agreement is not possible Bolinske Law will file the appropriate bankruptcy petition.
A lot will depend upon the structure of the business. If you want more in-depth information on business formation, entities, and general law, visit our Minnesota Business Law page.
A Chapter 7 bankruptcy filing in Minnesota involves liquidating all of a company’s non-exempt assets in order to pay creditors.
Chapter 11 of the Bankruptcy Code is used for partnerships or corporations in order to reorganize their debt. No trustee is appointed for a Minnesota Chapter 11 bankruptcy, but the bankruptcy estate remains subject to the supervision of the bankruptcy court.
A Chapter 11 filing requires that the debtor pay the administrative expenses of filing the bankruptcy petition and the claims of secured creditors. The Chapter 11 plan submitted by the debtor must be approved by the bankruptcy court at a confirmation hearing.