Chapter 11 in Los Angeles, Riverside, and Long Beach
The business bankruptcy firm of The Law Offices of Todd B. Becker in Los Angeles and Riverside discusses how filing Chapter 11 bankruptcy can help you restructure your business in order to keep creditors at bay.
Chapter 11 Business Bankruptcy
According to a January, 2009 report from BusinessWire, the number of publicly-traded companies that filed for Chapter 11 or Chapter 7 bankruptcy protection in 2008 was 136. The reason most businesses choose to file Chapter 11 bankruptcy is that they are then usually able to remain in operation, unlike those that file under Chapter 7. In a Chapter 11 business bankruptcy, the company must implement and adhere to a confirmed repayment plan, and the creditors must observe the plan.
While one purpose of Chapter 11 is to "rehabilitate" or "reorganize" a business so that it can continue without folding or closing, another is that it allows an individual debtor or a consumer to "reorganize" his or her debts, and thus his or her financial situation. In a Riverside, Long Beach, or Los Angeles Chapter 11, the debtor will not "liquidate" or wipe out most debts, as would be the case in a Chapter 7 bankruptcy proceeding.
Eligibility to File for Chapter 11
An individual debtor or consumer, or a business or company can file under Chapter 11. These debtors are seeking a second chance to pay their creditors without having to liquidate or sell off property and assets. Businesses get to remain in business and their employees (for the most part) continue to get paid.
Chapter 11 debtors file a reorganization plan that explains how the debtor proposes to repay creditors. The court appoints a bankruptcy trustee to supervise the case. If the court approves the plan, the debtor will have to repay specified debts according to the terms set forth in the plan. Not surprisingly, the outcomes of Riverside, Long Beach, and Los Angeles Chapter 11 bankruptcy proceedings vary widely, due to the individual nature of the financial situation of each debtor.
Seek Experienced Legal Business Bankruptcy Assistance
If you find yourself in a difficult business financial situation, it is important to hire an experienced legal team that truly cares about your company and wants to help you regain solvency. The attorneys at The Law Offices of Todd B. Becker have extensive experience in Chapter 11 bankruptcy law and other bankruptcy alternatives.
