| Chapter 11
Management Group's sole purpose is to provide case management services
to Bankruptcy Attorneys representing Individual Debtors filing for
Bankruptcy under Chapter 11.
Without a doubt, the Chapter 11
process was intended for business filings and was structured
accordingly. However, in light of today's economic downturn, their are
many individuals facing either the foreclosure process, or experiencing
financial difficulties, but trying to save their homes and/or investment
properties and reorganize their finances, but because of asset/liability
issues cannot qualify for relief under a Chapter 13 filing.
Chapter 11 filings and case
management are cumbersome and somewhat unique for individual Debtors
seeking the relief and protection under the Bankruptcy system. Many
attorneys are unfamiliar with the Chapter 11 process and will either
refer the Debtor to another attorney, if they can locate one, of simply
advise the Debtor to "surrender" their property(ies); because the
Attorney is unfamiliar with the Chapter 11 Process.
Individual Chapter 11 filings
have a dismal success rate and quite frequently converted to a Chapter
7, which provides little or no relief to the Debtor. According to a
study, Bankruptcy by the Numbers, complied by Dr. Gordon Bermant and Ed
Flynn of the Executive Office of the United State Trustee, focusing on
Chapter 11s filed between 1989 and 1995, 131,089 Chapter 11 cases were
filed and of those 35.5% of the cases were dismissed; and 34.5% of the
cases were converted; and only 26% were confirmed.
Not much as changed in the number
of Chapter 11 cases going on to conversion, since this study was
conducted; however, the playing field as changed, dynamically, as
individual debtors now enter the Chapter 11 arena. Additionally,
according to the United States Department of Justice website, from 1990
through 1999, 154,170 Chapter 11 cases were filed nationwide and of
those 44,666 cases were confirmed with the average time to confirmation
being 528 days, or roughly a year and a half.
Attorneys that charge a "flat fee
for their Chapter 11 work soon become disillusioned as their profit is
eroded while trying to get the case confirmed, and so many attorneys
will not undertake a Chapter 11 case. Why does it take so long to get a
case confirmed? Well, simply put, a Chapter 11 can be a tedious and
time-consuming process, utilizing hours of manpower and driving up an
attorneys overhead costs, because of the way the cases are handled by
the Bankruptcy system, which is the primary reason many attorneys will
only take on Chapter 7 and Chapter 13 cases.
With a Chapter 7 or Chapter 13 an
attorney can utilize various software programs to input the Petitions
and Schedules and simply "E-file" the completed work. Chapter 13
requires and additional step of formulating a workable Plan of
repayment, which can also be prepared by various software; however, a
Chapter 11 tends to be more complex.
Chapter 11 Management Group "cut
it's teeth", so to speak on Chapter 7 and Chapter 13 Bankruptcies and
could not fully understand an attorneys reluctant to undertake a Chapter
11, initially. After spending many hours speaking with various
attorneys with the problems they experienced with the handling of
Chapter 11 case, attending many educational seminars dealing solely with
Chapter 11 cases, analyzing prior cases, confirmed, converted or
dismissed, the owner of Chapter 11 Management Group, literally
"stumbled" upon a solution.
Chapter 11 Management Group is
now able to offer a unique set of services to attorneys in California
wishing to expand into the area of Chapter 11s or those simply wanting
to get their cases confirmed.
It does not matter whether you
are a large law firm, a sole practice, or a new attorney just starting
out, you no longer have to turn away clients because you are unable or
unskilled in the area of Chapter 11 Bankruptcy practice.
Chapter 11 Management Group is
your key to a successful reorganization - we help you "Put the Pieces
Together." |
