Las Vegas Chapter 11 Lawyers

When you’ve built a business with years of hard work, the thought of closing the doors forever can feel like giving up on your dreams. The truth is, for many business owners, bankruptcy doesn’t have to mean shutting down. In fact, bankruptcy can provide the exact tools the business needs to get back on its feet so it can keep serving customers, employees, and the community.

At Larson & Zirzow, our Las Vegas Chapter 11 lawyers help businesses of all sizes in Las Vegas use Chapter 11 bankruptcy to reorganize debt, renegotiate burdensome contracts, and create a plan for future success. If your company is fundamentally sound but buried under debt it can’t afford to pay right now, Chapter 11 may be the best path forward, and we’re here to guide you every step of the way.

What Is Chapter 11?

Chapter 11 is often called a “reorganization bankruptcy.” Unlike Chapter 7, which liquidates a company’s assets and closes it down, Chapter 11 allows a business to keep operating while restructuring its finances under court supervision.

In Chapter 11, the business continues to run day to day, but it gets critical breathing room from lawsuits, creditor collection actions, foreclosures, and aggressive payment demands. This pause allows the owner to create a workable repayment plan, renegotiate debt terms, and shed contracts or leases that no longer make sense.

Chapter 11 is powerful, but it can be complex and expensive. That’s why Congress created Subchapter V, a more affordable version of Chapter 11 for small businesses. Still, for some businesses, traditional Chapter 11 remains the right tool, especially if their debts are above Subchapter V limits or if they have a more complicated ownership structure.

How Does Chapter 11 Work?

When you file Chapter 11, an Automatic Stay immediately goes into effect. This stops creditors from suing, garnishing accounts, or seizing assets. The business owner remains in control of operations as a “debtor in possession” but must follow strict rules and oversight.

The owner, with help from experienced counsel, prepares a reorganization plan, which is basically a detailed roadmap for how the company will pay certain creditors over time while continuing to operate. This plan may include, for example:

• Extending or modifying repayment terms of loans and leases.
• Reducing total amounts owed through negotiated settlements.
• Rejecting burdensome leases or contracts that hurt cash flow.
• Selling certain assets that are non-essential to operations.
• Restructuring secured debts to match the true value of collateral.

Creditors get to vote on the plan, and the bankruptcy court must approve it before it becomes binding.

When Is Chapter 11 a Good Fit for a Business?

Chapter 11 is best for companies that:

• Have a fundamentally viable business model, but cash flow is temporarily strained.
• Want to keep operating, protect jobs, and preserve customer relationships.
• Need time and protection to renegotiate debts with landlords, lenders, or suppliers.
• Want to sell the business as a going concern instead of liquidating piece by piece.

For example, a regional marketing agency that suffered during economic downturns but still has loyal customers, or a construction company burdened by old debts but with plenty of new business in the pipeline, may find Chapter 11 to be the right fit.

What’s the Difference Between Chapter 11 and Subchapter V?

Traditional Chapter 11 works for companies of all sizes, but it can be costly and time-consuming, involving creditors’ committees, multiple court hearings, and months of plan negotiations that can drain resources.

Subchapter V, on the other hand, was created to make Chapter 11 more accessible to small businesses. It streamlines the process, lowers administrative costs, and speeds up plan approval. There’s no creditors’ committee in most cases, and most small business owners can keep their equity without putting in new capital.

Subchapter V is available to businesses with non-contingent secured and unsecured debts under a certain limit (the $7.5 million debt limit expired in 2024, dropping the debt limit for Subchapter V eligibility to $3,024,725). If your company qualifies, a Subchapter V small business reorganization often makes much more sense than a full Chapter 11 case, but for businesses with larger debts, traditional Chapter 11 may still be a viable option.

Larson & Zirzow has extensive experience guiding clients through both pathways and can help you pick the right one for your business’s size, debts, and goals.

What About Creditors and Contracts?

One of Chapter 11’s biggest advantages is the ability to deal with contracts and creditors under court protection. For example, if you have an expensive lease for office or retail space that no longer works for your business, you may be able to reject that lease or negotiate more favorable terms.

Similarly, secured creditors (like banks with a lien on your equipment or real estate) often have to come to the table to restructure payment terms if they want to maximize recovery. Chapter 11 gives you leverage to propose realistic payments based on what your business can afford.

What Happens if the Plan Fails?

Chapter 11 works when the business is fundamentally healthy and the owner is committed to the process. But not every plan succeeds. If the company cannot meet its plan obligations, the case could be dismissed or converted to Chapter 7, resulting in liquidation.

That’s why careful planning, realistic projections, and an honest look at whether the business can survive in its current form are critical. Larson & Zirzow helps clients develop practical, feasible plans, not wishful thinking.

How Does Chapter 11 Protect the Owner Personally?

For many businesses, owners have signed personal guarantees for loans or leases. A successful Chapter 11 can reduce or restructure business debts, which may help protect the owner from creditors coming after them directly.

In some cases, a coordinated personal bankruptcy may also be needed if the owner faces personal exposure that Chapter 11 can’t address. We advise clients on when this extra layer of protection makes sense.

Why Work With Larson & Zirzow for Chapter 11 Bankruptcy in Las Vegas?

Chapter 11 isn’t a DIY project, especially for small businesses where every dollar counts. Larson & Zirzow brings a level of focused, personalized service you won’t find at “big firms.” We get to know your business, understand your unique challenges, and craft practical plans designed to succeed, not just look good on paper.

In addition, our team includes highly skilled and experienced business bankruptcy lawyers, including a Board-Certified Business Bankruptcy Specialist — a distinction held by very few attorneys in Nevada. Combined with our extensive experience using Subchapter V for small businesses, we know how to help you reorganize the right way.

Is Chapter 11 Right for Your Las Vegas Business?

Maybe you’re tired of juggling calls from creditors. Maybe you see a path forward, if only you had time to catch up. Maybe you just want to understand your options before it’s too late.

No matter your situation, we’re here to help. Contact Larson & Zirzow today for a confidential consultation. We’ll look at your books, your goals, and your real chances for recovery, and we’ll help you choose the smartest next step.