Huntington Beach, CA Chapter 11 Bankruptcy Attorney
If you or a loved one is going through a financial problem with their business, we may be able to help. Our Huntington Beach, CA, bankruptcy lawyers, can help you file a Chapter 11 petition in California. For years we have helped countless debtors get back on their feet after experiencing financial hardships.
To discuss your case with an experienced professional, call The Bankruptcy Group today at (800) 920-5351.
Benefits of Chapter 11 Bankruptcy
Chapter 11 bankruptcy is a reorganization plan available to businesses. This type of bankruptcy dramatically differs from the more common types of consumer bankruptcy, Chapter 7 – straight bankruptcy – and Chapter 13, also called the wage earner’s plan. Additionally, Chapter 11 is one of the most expensive types of bankruptcies available.
If you are a regular consumer who has limited income and excessive debt, you may qualify for Chapter 7. If you have enough income to pay back your creditors to a certain degree, you might be better off qualifying for Chapter 13. However, if you are running a business and are facing financial difficulties, then you should consider filing for Chapter 11 bankruptcy.
Most of the time, the debtor is the party who voluntarily initiates the Chapter 11 process. This is also known as a voluntary Chapter 11 petition. However, there are instances where a business’s creditors are the ones who file for Chapter 11, instead of the debtor. This is sometimes called involuntary Chapter 11 petition.
Although individuals are not banned from filing under Chapter 11, corporations, small businesses, and limited liability corporations (LLCs) are the ones who most often file for Chapter 11 bankruptcy in California. Our Huntington Beach bankruptcy attorneys can help you determine whether filing for Chapter 11 bankruptcy is right for you.
The Chapter 11 Bankruptcy Process
Chapter 11 bankruptcy requires a debtor to go through a series of steps to obtain a discharge. For instance, as a Chapter 11 petitioner, you will need to file particular documentation known as “schedules” through which you will need to disclose all your property. Property listed on your schedules will include, but is not limited to, your house, land, buildings, and other major assets. Additionally, you can include any exemption that may apply for your Chapter 11 bankruptcy. Your schedules will also ask you to list all the creditors to whom you owe any money.
Once your schedules are filed, you will need to go through a creditors meeting, which is a crucial of the bankruptcy process. Once you have gone through this initial process, you will be considered a debtor in possession. You will then need to work through a reorganization plan and submit it for approval by your creditors. Through this plan, you are bound to make payments to your creditors in order to satisfy your debt. Once you have complied with all the terms and conditions on the plan, you may obtain a discharge.
The Effects of Chapter 11 on a Business
If you are a business owner considering filing for Chapter 11in California, you may be concerned about what will happen to your company. Once you file for Chapter 11, you will continue operating your business as a “debtor in possession.” Unlike Chapter 7 or Chapter 13, where the court may appoint a trustee or bankruptcy administrator, in Chapter 11 the court will generally refrain from naming one. However, this does not mean that the court cannot or will not appoint a trustee under certain circumstances. For instance, if the court finds that you engaged in dishonest or fraudulent behavior, it is likely that you will have your bankruptcy case overseen by a trustee.
Under Chapter 11, you will keep running your business, but significant decisions regarding your company will be overseen by the court and will require its approval. To keep control over your finances and make sure you can keep your business running, you need to be careful not to make mistakes that may get your bankruptcy case dismissed. For instance, if you fail to file essential documents on time, withhold information, or otherwise provide incomplete information, you can have your case dismissed by the court and may be left without any viable options. Our skilled and knowledgeable Chapter 11 attorneys can help you every step of the way.
Huntington Beach, CA Bankruptcy Attorneys Offering Free Consultations
Going through bankruptcy is not quite as painful as many people seem to think. Chapter 11 is meant to help debtors keep their business operating while they come up with a strategy to manage significant amounts of debt. You do not have to go through this difficult process alone. Let the Chapter 11 bankruptcy attorneys at The Bankruptcy Group help you file your Chapter 11 bankruptcy petition in California. To discuss your case in a free, confidential consultation, call our offices today at (800) 920-5351.