What is a Chapter 22 Bankruptcy?
If your business is struggling financially, and you other co-owners have started researching bankruptcy possibilities, you may have come across references to Chapter 22 bankruptcy. Or, if your business has gone through a reorganization bankruptcy in the past and wants to have that option again, your search terms likely yielded results containing the phrase Chapter 22 bankruptcy. Yet if you look at the US Bankruptcy Code, “Chapter 22” is not actually a type of bankruptcy that can be filed. What does this term mean, and when must a business plan for what is known as a Chapter 22 bankruptcy?
In short, “Chapter 22” refers to a repeat Chapter 11 filing. Our West Palm Beach business bankruptcy attorneys can provide you with more information below and can begin discussing your business’s plans for reorganization bankruptcy today.
“Chapter 22” Bankruptcy is an Informal Term for a Repeat Bankruptcy
There is not a type of bankruptcy in US bankruptcy law that a business can choose to file that is called “Chapter 22” bankruptcy. Rather, as we explained above in brief, this is a term that is used to refer to a repeat Chapter 11 bankruptcy. The term “Chapter 22” is derived from a doubling — or repeating — of Chapter 11, turning it into “Chapter 22.”
If your business has never filed for Chapter 11 bankruptcy before, then you will not need to concern yourself with Chapter 22 for now. Instead, a lawyer can assist you with your business’s Chapter 11 or other reorganization filing. If your business has in fact filed for Chapter 11 bankruptcy in the past, however, then you will need to speak with a lawyer about the possibility of a “Chapter 22” bankruptcy filing if your business wants to file for Chapter 11 again.
Eligibility for Chapter 22 Bankruptcy
In general, a Chapter 22 bankruptcy filing may be possible for your business, but the bankruptcy court will need to confirm a repeat reorganization plan. In most cases, the bankruptcy court will assess a business’s plans for a repeat Chapter 11 bankruptcy by applying various factors that include the length of time since the previous Chapter 11 filing, the reasons for the repeat filing, and likely creditor consent to the repeat filing.
The best way to determine whether or not your business will be able to restructure debt again through a repeat Chapter 11 filing is by discussing the details of your business’s financial circumstances, including the previous bankruptcy case, with a business bankruptcy attorney in South Florida.
Contact Our West Palm Beach Bankruptcy Lawyers Today
At Kelley Kaplan Delaney & Eller, PLLC, we have years of experience assisting businesses with reorganization bankruptcies so that businesses can restructure debt and become more financially stable in the years that follow their bankruptcy cases. Reorganization bankruptcies are particularly helpful for South Florida businesses that are struggling financially but have a plan for becoming more financially stable in the future and want to keep the business running during the bankruptcy case.
Whether you have questions about Chapter 11 bankruptcy, a repeat “Chapter 22” bankruptcy, Subchapter V, or another type of business reorganization bankruptcy, an experienced West Palm Beach bankruptcy attorney at Kelley Kaplan Delaney & Eller, PLLC can assist you. Contact our firm today for more information.
Source:
law.cornell.edu/uscode/text/11
