Washington Bankruptcy Courts
New laws affect the way small businesses are reorganized by the Washington Bankruptcy Courts under Chapter 11. Today, according to a new mandate given by the Department of Justice to the United States Trustee, businesses that file Chapter 11 must be forced into liquidation under Chapter 7 in as little as two months. Previous practices allowed up to one year of operating at a loss before proposing an acceptable plan, whereas today, both profit and an acceptable plan are required in record time.
Contacting Washington Bankruptcy Court:
Washington Eastern Bankruptcy Court Divisions: Ephrata, Richland, Spokane, and Yakima.
Washington Western Bankruptcy Court Divisions: Bremerton, Everett, Kelso, Seattle, Tacoma, and Vancouver.
The United States Trustee appointees assistant trustees in moist cases, who are usually local attorneys who are approved to act in the stead of the US Trustee. In Chapter 11 cases, debtors are permitted to continue operation as a debtor in possession without the appointment of a trustee in most circumstances. Status as a debtor in possession remains subject to reporting requirements, including the duty to report earnings and disposition of assets on a regular basis. New Chapter 11 laws and rules hit small business owners severely, and many noted analysts believe these changes in the law will have a chilling effect on American small businesses today who will be less willing to take risks and start new companies.
|
