Orange County, CA Chapter 11 Bankruptcy Attorney
Bankruptcy can be a powerful tool to help you deal with excess debt and obtain financial relief. Despite what many may believe, bankruptcy is a process that can help you keep your business afloat while you pay the debt through a repayment plan. If you or someone you know is facing financial problems with their business, we may be able to help.
Our Orange County bankruptcy attorneys are ready to help you understand your rights as a business owner during a bankruptcy process. To learn more about your specific case in a free, confidential consultation, call The Bankruptcy Group today at (800) 920-5351.
Understanding Chapter 11 in California
For many years, financial distress has affected the lives of millions of Americans. Many people opt for bankruptcy in light of their difficult situation. However, not every bankruptcy works in favor of all types of debtors. Other chapters typically help businesses reorganize their debt. Chapter 11 is available to restructure debt incurred by corporations, sole proprietorships, and/ or partnerships – although it can sometimes be filed by consumers. Through the years, many large companies have gone through this process to take control of their finances and pay back their debtors. Our professional, skilled, experienced bankruptcy attorneys can help you determine whether Chapter 11 bankruptcy is the best option for your business.
Chapter 11 Process in California
As with every bankruptcy process, Chapter 11 begins by filing a bankruptcy petition with the bankruptcy court. The filing of your Chapter 11 bankruptcy petition should be made in the state where your business is located. However, you may also file your bankruptcy petition where you are domiciled.
Generally, the business filing for Chapter 11 must file a written disclosure containing information related to the business’ assets, liabilities, among other relevant information. This report must be rendered to understand where the company is standing finance-wise and to keep all creditors informed of all the financial activity related to your business.
Additionally, you will need to go through what is known as the “Section 341 Meeting.” During this meeting, you will meet with a court-appointed trustee and, possibly, some of your creditors. The role of the trustee is to oversee and administer the Chapter 11 process. However, the creditor will not work for you. They will make sure your creditors get paid as much as possible during your Chapter 11. Additionally, you will be required to bring documentation such as your identification, Social Security card, your bankruptcy documentation, and any other document the trustee may ask for. During this meeting, you will be questioned under oath.
As soon as you have filed your bankruptcy petition, you will have up to 120 days to submit a reorganization plan. This plan has to be approved by your creditors. If you are not able to provide your reorganization plan on time, your creditors may propose their own reorganization plan which you will need to execute. Additionally, the bankruptcy court will need to approve your reorganization plan. Once your reorganization plan is accepted, your company will obtain a discharge. However, this is not the end of your Chapter 11 process. You will need to meet all the requirements outlined in your plan without delay.
This is part of the complicated process involving a Chapter 11 bankruptcy. It is in your best interest to be represented by a skilled, experienced attorney who understands how Chapter 11 works and can guide you through the entire process.
What Happens to My Business During Chapter 11?
Many business owners may wonder what will happen to their business once they file for Chapter 11. Many people tend to believe that filing for bankruptcy means they will lose their business. However, bankruptcy is designed to help business owners manage their debt instead of causing more problems. When you file under Chapter 11, you become what is known as a “debtor in possession.” As a debtor in possession, you keep control over your business’ assets.
Furthermore, you are also allowed to continue operating your business as usual. However, if you are filing under Chapter 11, there is an important distinction to make. While you are generally allowed to continue operating your business, major decisions regarding its finances will need the approval of the bankruptcy court. Any decisions that are part of the ordinary course of operations will not require court approval. However, any major investments, such as purchases or acquisitions, will need court approval.
How Can a Lawyer Help Me During Chapter 11?
Nothing prevents an individual from representing himself or herself during a bankruptcy process. However, filing, participating, and meeting all the requirements set forth by bankruptcy requires in-depth knowledge, and experience with bankruptcy law and the provisions contained in the Bankruptcy Code. While you may have the opportunity of studying the different codes related to Chapter 11, a mistake during your bankruptcy process can impact the result of your case. A skilled, experienced bankruptcy attorney can help you understand what the process entails, how it works and make sure you comply with all the requirements to obtain a discharge so you can save your business from a financial disaster.
Orange County Chapter 11 Bankruptcy Lawyers Offering Free Consultations
If you or someone you know has a business facing financial distress, our Orange County, CA, bankruptcy attorneys can help. With decades of experience handling countless bankruptcy cases, our skilled, dedicated, and professional bankruptcy lawyers can help you understand your Chapter 11 process and guide you to put you in a better position of a successful discharge. Don’t let a bad financial break destroy the business you have worked so much to build. Let our experience, knowledge, and skill work for you. To learn more about your case in a free, confidential consultation, call The Bankruptcy Group today at (800) 920-5351.