So many times I meet with businesses and individuals that are interested in Chapter 11 bankruptcy too late. They have already tore through their resources until there is nothing left. Not even enough to attempt a successful reorganization. It is even more important for businesses that collect rent as their form of income.
Florida Statutes and the state court can kill any reorganization attempt before it even starts. Florida Statute 697.07 can take all of your rents and not allow you to use it to fund a Chapter 11 reorganization attempt. Bankruptcy case law is not settled in the area of assignment of rents but one thing is for sure, if you wait around and let the state court adjudicate the issue then you will have no chance to reorganize.
If your business relies on some form of rental income, filing Chapter 11 early may be the only way to save your business. For more information please feel free to call (904) 521-9868 or (386) 868-2650. If you just need more information regarding Chapter 11 bankruptcy go to http://chapter11jax.com Again, please do not delay talking to a Chapter 11 bankruptcy attorney. Delay may cost you more than you think!