Chapter 11 Business Bankruptcy
Working to Help Clients ThriveLos Angeles Chapter 11 Bankruptcy Attorneys
Helping Businesses Resolve Financial Challenges
The skilled Chapter 11 bankruptcy lawyers at Weintraub & Selth, APC are here to assist business owners throughout Los Angeles with the Chapter 11 reorganization process. We understand that business owners have unique questions that can only be answered by an experienced bankruptcy attorney. We have been serving business owners like you for several decades, and our attorneys are ready to answer all of your questions regarding Chapter 11 bankruptcy when you set up your free, no-obligation consultation.
If you are considering a Chapter 11 business bankruptcy filing, then get in touch with our lawyers so we can develop a detailed plan to propose to the bankruptcy court and your creditors. Does your business need just a bit of monetary “breathing room” during these difficult economic times? If you want to continue operating your business, Chapter 11 may be the right path. Our Los Angeles business bankruptcy lawyers can help you decide.
What Is Chapter 11 Bankruptcy?
The Chapter 11 business bankruptcy code was designed to give businesses an opportunity to reflect on their current financial situation, develop a plan of reorganization, and emerge from bankruptcy in a more financially viable state.
When Should I File for Chapter 11 Bankruptcy?
However, when to file for Chapter 11 business bankruptcy is a serious decision that requires a thorough understanding of the effects on a business entity. If you are considering bankruptcy for your business, a Chapter 11 filing may give you the necessary financial flexibility to move ahead. Corporations, and Sole proprietorships Partnerships are types of business entities can file for Chapter 11 bankruptcy.
What Happens After Chapter 11?
After you file for Chapter 11 bankruptcy, the federal bankruptcy court must accept it. When it is accepted, an automatic stay is triggered, which means that any creditor actions to collect debts will be stopped. This includes requests for payment, foreclosure, repossession, lawsuits, and even evictions. The automatic stay will last until your Chapter 11 case is completed, though in some circumstances the bankruptcy court may lift it if a creditor requests it.
In addition to the automatic stay, the business will be considered a “debtor in possession” which means that it will keep control of its assets while Chapter 11 is still going. This means that you will be in charge of taking on the role of a bankruptcy trustee. At this point, there will be options you can take in order to keep your organization afloat during bankruptcy. To learn more, reach out to our experienced Chapter 11 attorney in Los Angeles at Weintraub & Selth, APC.
The most important part of Chapter 11 is the reorganization or repayment plan. Similar to Chapter 13, You must create a plan and propose how much you will pay the creditors. Then, you will attend a meeting of creditors and your creditors may submit modifications to the plan. This part may take the longest because there is plenty of back-and-forth in communication. It is possible that during this process, creditors will agree to be repaid less than what was originally due.
Finally, creditors will get to vote on the plan -- if two-thirds of them accept it, then the bankruptcy court confirms it. This means the debts are considered “discharged” and are then replaced by debts that are confirmed by the court. The business must make payments according to the final reorganization plan.
Have more questions? The Chapter 11 attorneys at Weintraub & Selth, APC are backed by years of experience. During a consultation, we can discuss your financial situation and determine what your best options are, then create a detailed plan to ensure that you and your business are protected. Do not hesitate to reach out today by completing an online form or calling (310) 220-4147.
Personalized Debt Relief for Businesses
Since there are many nuances within the bankruptcy laws, particularly the laws that relate to businesses, it pays to seek the advice of an experienced Los Angeles business bankruptcy lawyer to help you make the right decision for your business situation. To speak to a legal professional at Weintraub & Selth, APC, please contact us today. We will gladly discuss your options and go into more detail about the business bankruptcy timeline.
Call to (310) 220-4147 for your free consultation.
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