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Businiess name:
Uriarte & Wood Attorneys at Law
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Review by:
Paul T.
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Review content:
Chapter 11
Chapter 11 is designed for the reorganization of a business. In most instances the business remains in control of its operations as a debtor in possession, and is subject to the oversight and jurisdiction of the court. Chapter 11 affords the business a number of mechanisms to restructure its business including the acquisition of financing and loans on favorable terms by giving new lenders first priorities on the business earnings. Another benefit of Chapter 11 is that the court may permit the business to reject and cancel contracts while also staying any pending litigation against the business during their reorganization. A business may emerge from a Chapter 11 bankruptcy in a few months or within several years, depending on the complexity of the case.
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