Disadvantages of the
Chapter 11;
o The debtor operates in a fish bowl.
o There are monthly reports due to the court and the United States Trustee’s office.
o There are periodic status conferences with the court.
o The debtor must close its’ bank accounts and books on the day it files bankruptcy and open new books new bank accounts.
o More expensive filing fee; however the Chapter 11 is a much more robust tool for the Debtor and if applicable is well worth the cost.
o More expensive attorney fees; given that the debtor in possession remains in control there are many first day motions the attorney must present and argue. There are many forms and a seven day package that you must submit to the US Trustee (Department of Justice)
o The debtor operates in a fish bowl.
o There are monthly reports due to the court and the United States Trustee’s office.
o There are periodic status conferences with the court.
o The debtor must close its’ bank accounts and books on the day it files bankruptcy and open new books new bank accounts.
o More expensive filing fee; however the Chapter 11 is a much more robust tool for the Debtor and if applicable is well worth the cost.
o More expensive attorney fees; given that the debtor in possession remains in control there are many first day motions the attorney must present and argue. There are many forms and a seven day package that you must submit to the US Trustee (Department of Justice)