Los Angeles Chapter 11 Bankruptcy Attorney
For business owners in the Los Angeles area who are struggling with crippling debt, a Chapter 11 bankruptcy may be an opportunity to become profitable again by taking control of business debt and continuing to run the day-to-day business operations. Through Chapter 11 bankruptcy, business owners can work to protect their business assets, reorganize their debts and establish a plan to repay creditors over time. In some cases, Chapter 11 bankruptcy may also be available to high net worth individuals in Los Angeles who have significant assets and debts. There are a number of reasons why Chapter 11 is a powerful debt-relief solution for businesses and high net worth individuals, and if you want to get the most out of your bankruptcy filing, you must work closely with a reputable attorney who specializes in bankruptcy law. The Los Angeles Chapter 11 bankruptcy attorneys at ibankruptcyattorneys.com are equipped to handle Chapter 7, Chapter 11 and Chapter 13 bankruptcy filings in Southern California and are prepared to assist you in finding the debt relief solution that is right for you or your business. Remember that you do not have to risk losing your business in order to obtain relief from debt. For more information about filing for bankruptcy in Los Angeles, or to find out which bankruptcy chapter promises the best results, consult our reputable legal team today.
Experienced Chapter 11 Bankruptcy Lawyers in Los Angeles
Our attorneys at ibankruptcyattorneys.com have been serving business owners and individuals in the Los Angeles area for years and we know how to see clients through their bankruptcy case to a favorable conclusion. It is our goal to help business owners facing burdensome business debts overcome their financial hurdles, file for bankruptcy relief and once again operate at a profitable level. We have experience filing business bankruptcy petitions, negotiating with creditors and creating reorganization plans, and we can assist you with every step of the Chapter 11 bankruptcy process. Contact ibankruptcyattorneys.com as soon as possible to schedule a free consultation with our Chapter 11 bankruptcy attorneys. As with any business decision, choosing to file for bankruptcy comes with certain benefits and risks that should be carefully weighed before moving forward. Fortunately for you, we have years of experience helping clients navigate a wide variety of financial matters and we pride ourselves on helping Chapter 11 debtors obtain the relief they need. We can review your financial situation and go over the various debt-relief options available to you, helping you decide which bankruptcy chapter best suits your needs and your future financial goals.
What is Chapter 11 Bankruptcy?
Many people associate bankruptcy with failure and assume that when a company goes bankrupt, it no longer exists. On the contrary, while some companies are liquidated or sold in bankruptcy, other companies use bankruptcy to restructure while continuing to operate, reorganize their debt payments and get back on track financially. Chapter 11, also known as reorganization bankruptcy, is a bankruptcy chapter that provides for a reorganization of debts, usually involving a partnership or corporation. Business owners in Los Angeles who need time to repay their creditors and want to continue operating their business may benefit from the flexibility of a Chapter 11 bankruptcy. The purpose of this bankruptcy chapter is to put together a debt reorganization and repayment plan that allows business owners to continue operating as a business while repaying creditors through a court-approved repayment plan or reorganization that addresses priority debt, secured debt and unsecured debt.
Who is Eligible for Chapter 11 Bankruptcy?
Chapter 11 bankruptcy is generally reserved for businesses, including sole proprietorships, small businesses, partnerships and corporations. The goal of a Chapter 11 bankruptcy filing is to reorganize the business’ debts and assets to keep the business running and pay creditors over time under a repayment plan. Under a Chapter 11 reorganization, businesses can pay all or a portion of their unsecured and/or secured debts over time rather than paying under the creditors’ current terms. This makes Chapter 11 bankruptcy a good option for businesses in Los Angeles with sufficient prospects to continue operations provided the business is given the opportunity to relieve debt and/or restructure in order to return to a profitable state. In some cases, high net worth individuals may also qualify for bankruptcy relief under Chapter 11, if they have specific assets they don’t want to risk losing in Chapter 7 bankruptcy and too much debt for a Chapter 13 bankruptcy. In the case of individuals, Chapter 11 bankruptcy is in some ways similar to Chapter 13 bankruptcy, another type of reorganization available to individual debtors with a regular income who want to protect certain assets and pay their creditors back under a court-approved repayment plan.
What is the Chapter 11 Process?
The Bankruptcy Petition
A Chapter 11 bankruptcy case begins with the filing of a voluntary petition with the bankruptcy court and payment of the filing fee, which in California is $1,717. Some Chapter 11 bankruptcies involve an involuntary petition, in which case three or more qualifying creditors file a bankruptcy petition against an individual or business. If you file a voluntary bankruptcy petition, you will also file a disclosure statement disclosing your assets, liabilities and business affairs and a plan of reorganization and/or repayment, which will include a classification of the claims against you and specify how each class of claims will be treated. A Chapter 11 reorganization or repayment plan is essentially a contract between the business (the debtor) and the business’ creditors, setting down in writing the conditions for repayment. In many cases, a business seeking bankruptcy relief under Chapter 11 will end up restructuring or downsizing the company in order to reduce its expenses and free up assets to allow for repayment.
The Vote and Confirmation
Once the reorganization plan has been submitted, the creditors will vote on the plan. If the creditors do not accept the plan, the debtor can ask the judge to order the creditors to accept it. The court will then conduct a confirmation hearing to determine whether to confirm the reorganization plan, a decision that is based on several factors, including whether or not:
- The reorganization plan is feasible,
- The plan has been proposed in good faith, and
- The plan is in compliance with the Bankruptcy Code.
After the reorganization/repayment plan is confirmed by the court, it will be implemented and carried out by the debtor. If you are a business owner filing for Chapter 11 bankruptcy, you will receive a discharge of your remaining debts when the plan is confirmed by the court. However, if you are an individual debtor seeking bankruptcy relief under Chapter 11, your discharge will not be granted until you have completed all payments under the repayment plan.
What is the Automatic Stay?
Another benefit of Chapter 11 bankruptcy is that it gives you a reprieve from creditor calls and collection actions. In fact, one of the most powerful tools in any Los Angeles bankruptcy filing is the automatic stay, which immediately stops creditors and debt collection agencies from contacting you in an attempt to collect debts against you. The automatic stay also puts a stop to debt collection lawsuits, repossessions and tax levies, giving you the time and breathing room you need to implement a reorganization plan and get your business back on solid financial footing. As soon as you file a petition for Chapter 11 bankruptcy in Los Angeles, the bankruptcy court will issue an automatic stay against foreclosure and debt collection efforts and notify each of your creditors that you have filed for bankruptcy.
Benefits of Chapter 11 Bankruptcy
Chapter 11 of the Bankruptcy Code was designed to give U.S. businesses with significant debts and assets an opportunity to address their financial situation and create a plan of reorganization while continuing business operations under the supervision of the bankruptcy court. Chapter 11 bankruptcy can help make business debts more manageable by stopping creditors from pursuing collection actions and by allowing struggling business owners to restructure their business and keep their company running while repaying creditors under more favorable terms, such as lower monthly payments or reduced interest. Rather than filing a Chapter 7 bankruptcy and ceasing business operations, business owners who want to save their business, retain their employees and get a fresh financial start can benefit from a Chapter 11 bankruptcy filing. With regard to individuals with significant assets and debts who are considering trying to get out from under overwhelming debt by filing for bankruptcy, Chapter 11 bankruptcy offers several benefits over other bankruptcy chapters.
Compared to Chapter 7, Chapter 11 bankruptcy gives high net worth individuals more control over which of their assets will be liquidated to satisfy outstanding debts. Unlike in a Chapter 7 liquidation bankruptcy, in which a third-party bankruptcy trustee decides which of the debtor’s assets will be sold to repay creditors, a Chapter 11 bankruptcy filing allows debtor trustees to choose for themselves which of their assets to keep and which to sell to satisfy debts. That is one of the main reasons why individuals with significant assets who are in need of a debt-relief solution may choose Chapter 11 bankruptcy, so they can have more control over which of their assets are liquidated and which are protected. Compared to a Chapter 13 filing, Chapter 11 bankruptcy gives individual debtors a great deal more flexibility in terms of the amount of debt that can be reorganized and how much time they have to pay it back.
How Our Chapter 11 Bankruptcy Attorneys Can Help
Chapter 11 bankruptcy is one way for business owners who want to reorganize and restructure their debt can get a fresh start. However, filing for Chapter 11 bankruptcy can be complicated and costly. It is also a major decision that requires a clear understanding of how Chapter 11 bankruptcy works and how filing for bankruptcy can impact your business’ financial situation going forward. There are a lot of moving parts in a business bankruptcy case and if you want to ensure the best possible outcome for the future of your business, you need an attorney on your side who specializes in Chapter 11 bankruptcies.
Remember that you are not legally required to hire an attorney to file for bankruptcy in Los Angeles. However, retaining a skilled attorney is something we recommend to any individual or business considering bankruptcy. When you hire our Chapter 11 bankruptcy attorneys at ibankruptcyattorneys.com, we will help you through the entire bankruptcy process, including filing your bankruptcy petition, examining your business’ assets and debts, drafting disclosure statements, developing a plan of reorganization and negotiating with creditors. Our Los Angeles bankruptcy attorneys have more than 20 years of experience and we have filed or overseen thousands of bankruptcy cases involving individuals and business owners during that time. We understand that you have unique questions and concerns as a business owner, and we will do everything in our power to ensure that you emerge from bankruptcy with your finances in order and your business back on track.
Contact Us Today for a Free Chapter 11 Bankruptcy Consultation
Thanks to Chapter 11 bankruptcy, troubled businesses in Los Angles have the option of keeping their business going and addressing their financial problems with a reorganization, rather than shutting down their business operations altogether. That being said, Chapter 11 bankruptcy isn’t always the right answer. Bankruptcy laws are complex, particularly those pertaining to businesses, and if you want to reorganize and restructure your business debts, it is in your best interest to seek legal advice from a Los Angeles bankruptcy attorney who can help you make the right decision based on your business’ unique situation. If you are considering Chapter 11 bankruptcy for your business, contact our bankruptcy attorneys right away for assistance in filing a bankruptcy petition and putting together a reorganization plan to propose to the bankruptcy court and your creditors. With our lawyers at ibankruptcyattorneys.com on your side, you may be able keep your company running and meet the terms of your reorganization while paying off your debts.