Chapter 11 bankruptcy can be a daunting proposition, with many facets to consider. Each individual case has its own set of complexities to be sorted out, and the sum total is often tangled and tricky. Here a Florida bankruptcy lawyer shares some common tips for negotiating your Chapter 11 bankruptcy proceedings.
Determinants for Negotiation
First, it is necessary to determine the parameters for negotiation. These include precise discussions of value, assessment of all the negotiating parties, the assets involved and any issues of ownership of said assets. Once these have all been laid out, it becomes time to exercise the tools at your disposal.
First off, the debtor has the advantage of control. Under the bankruptcy code, according to the bankruptcy lawyer, the debtor has up to 120 days before other parties to propose a renegotiation plan. Chapter 11 negotiations involve the restructuring of debt, so this advantage of control is quite significant.
Another powerful tool in the process involves majority vote. According to the bankruptcy lawyer, parts of the repayment plan under Chapter 11 are approved or rejected by majority vote. In order to take advantage of this powerful tool, a debtor may elect to restructure in such a way that a majority of the creditors will approve, even if a very large creditor does not, and that large creditor will be bound to follow the settlement plan despite their objections.
Knowing the tools at your disposal is the first step toward getting the best result from your Chapter 11 filing. Consult with a bankruptcy lawyer to learn more about these tools and how best to employ them.