Utah Chapter 11 Bankruptcy Attorneys

Skilled Representation for Distressed Businesses in Pleasant Grove and Across Utah

If your corporation, partnership, or sole proprietorship is struggling with substantial debt, Rogers & Russell can guide you through the Chapter 11 bankruptcy process to keep your business viable while you develop strategies for long-term recovery.

Often called “reorganization bankruptcy,” Chapter 11 permits your business to continue operating while restructuring debts under a court-approved repayment plan. Our experienced bankruptcy attorneys help Utah businesses file Chapter 11 quickly and efficiently, protecting your operations from creditor harassment and positioning your business for a successful turnaround.

Once your case is filed, the automatic stay immediately halts collection efforts, lawsuits, repossessions, and harassing phone calls—giving you critical breathing room.

Understanding the Chapter 11 Bankruptcy Process

A Chapter 11 case can last a few months to several years, depending on the complexity of the business. During the process, business owners usually remain in control of daily operations as “debtors in possession.” Unless fraud, dishonesty, or gross mismanagement is found, no trustee will be appointed.

Major decisions, however, require bankruptcy court approval. These may include:

  • Sale of assets (other than ordinary inventory)

  • Entering into or breaking leases for property or equipment

  • Obtaining post-petition financing or mortgages

  • Expanding, downsizing, or shutting down operations

  • Modifying contracts with unions, vendors, or licensors

  • Paying professional fees for attorneys, accountants, or consultants

Exclusivity Period & Plan of Reorganization

After filing, debtors enjoy an exclusivity period (initially 120 days, but often extendable) during which only they can propose a reorganization plan. If the debtor fails to file a plan in that period, creditors may propose their own competing plans.

For the court to confirm a Chapter 11 plan, it must meet several requirements, including:

  • Feasibility – the plan is realistic and likely to succeed

  • Good faith – the debtor is not abusing the process

  • Best interests of creditors – creditors receive at least as much as they would in a Chapter 7 liquidation

  • Fairness and equity – the plan treats classes of creditors appropriately

Once confirmed, the plan becomes binding on all parties. Pre-petition debts are discharged, and your business moves forward under the new contractual terms created by the plan.

Subchapter V: A Streamlined Option for Small Businesses

In 2020, Congress created Subchapter V of Chapter 11 to make reorganization more accessible to small businesses. For Utah business owners with debts under the current federal threshold (adjusted periodically), Subchapter V offers key benefits:

  • No creditor committee (unless ordered by the court)

  • Faster timelines and reduced legal expenses

  • A court-appointed Subchapter V trustee who helps facilitate negotiations

  • No requirement for creditors to approve the plan (court can confirm if requirements are met)

Subchapter V often provides a more cost-effective and efficient way for small and mid-sized businesses to reorganize.

Protecting Business Owners’ Personal Assets

  • Sole Proprietors – Because the owner and business are legally the same entity, filing Chapter 11 puts personal and business assets at risk. Our attorneys work to shield your personal property where possible while restructuring your debts.

  • Corporations & LLCs – Owners generally do not risk personal assets beyond their investment in the company, but personal guarantees on loans can create exposure.

  • Partnerships – Depending on the partnership agreement, personal assets may be at risk. We advise partners on strategies to minimize personal liability.

Benefits of Chapter 11 Bankruptcy in Utah

  • Stops lawsuits, foreclosures, and collection efforts immediately

  • Allows businesses to restructure secured and unsecured debt

  • Provides time to renegotiate leases and contracts

  • Permits continued operation while debts are addressed

  • Can help preserve jobs and protect community relationships

  • Offers flexibility compared to Chapter 7 liquidation

Common Questions About Chapter 11

How long does Chapter 11 take?
Anywhere from a few months to several years, depending on business size, complexity, and negotiations with creditors.

Will I lose control of my business?
Most business owners remain in control as debtors in possession, but the court monitors key decisions.

Can Chapter 11 reduce secured debts?
Yes—through a process called “cramdown,” the court may approve repayment terms that reduce the balance to the collateral’s value.

Is Chapter 11 right for my business?
That depends on your debts, business structure, and goals. Alternatives may include Chapter 7, Chapter 13 (for individuals), or negotiated workouts with creditors.

Contact an Experienced Utah Bankruptcy Attorney

At Rogers & Russell, we understand that Chapter 11 is not just about surviving—it’s about building a foundation for future growth. We have successfully represented businesses throughout Utah in reorganizations, workouts, and bankruptcy proceedings.

📞 Call us at 801-899-6064 or contact us online to schedule a confidential consultation. Let us help you protect your business, preserve your assets, and plan for a stronger financial future.