Chapter 11 Bankruptcy
What is Chapter 11 Bankruptcy?
A Chapter 11The chapter of the Bankruptcy Code providing (generally) for reorganization, usually involving a corporation or partnership. (A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.) Click for more: Chapter 11 Bankruptcy bankruptcyA legal procedure for dealing with debt problems of individuals and businesses; specifically, a case filed under one of the chapters of title 11 of the United States Code (the Bankruptcy Code). Click for more: Bankruptcy Introduction Video allows a business to reorganize its debt. A Chapter 11 reorganization is advisable when a business finds it difficult to operate due to overwhelming debt and when creditors are unwilling to continue to extend credit.
Why Should I File for Chapter 11?
A Chapter 11 bankruptcy filing will stop lawsuits and harassing phone calls, so that a business can focus on moving forward and making money. This fresh startThe characterization of a debtor’s status after bankruptcy, i.e., free of most debts. (Giving debtors a fresh start is one purpose of the Bankruptcy Code.) often will enable a business to survive, which in turn benefits the whole society by preserving jobs.
A Chapter 11 bankruptcy enables the business to continue its day-to-day operations, typically under the direction of its current management. Even though there are certain types of decisions that will require court approval, as a debtorA person who has filed a petition for relief under the Bankruptcy Code. in possession, the business is generally able to buy enough time to organize and implement its own planA debtor’s detailed description of how the debtor proposes to pay creditors’ claims over a fixed period of time. to eliminate certain debts and leases and repay the balance over time. Once a business files for Chapter 11 bankruptcy, it may obtain new financing that can possibly even have priorityThe Bankruptcy Code’s statutory ranking of unsecured claims that determines the order in which unsecured claims will be paid if there is not enough money to pay all unsecured claims in full. For example, under the Bankruptcy Code’s priority scheme, money owed to the case trustee or for prepetition alimony and/or child support must be paid in full before any general unsecured debt (i.e. trade debt or credit card debt) is paid. over existing debt. The business is able to choose to continue to operate at its present location or terminate its lease and move to a more favorable location.
A Chapter 11 bankruptcy is a complicated and involved process. Unlike many bankruptcy attorneys who refer a business to another law firm specializing in Chapter 11 bankruptcies, Hallstrom, Klein & Ward LLP has Chapter 11 bankruptcy attorneys who can handle your business bankruptcy in house.
Orange County Chapter 11 Lawyers
A Chapter 11 bankruptcy is a complicated and involved process. Unlike many bankruptcy law firms that will refer a business to another law firm specializing in Chapter 11 bankruptcies, Hallstrom, Klein & Ward LLP has a Chapter 11 bankruptcy attorney affiliated with our firm, so we can handle your business bankruptcy in house. Contact us today at (949) 450-8500 for your FREE consultation.
In addition to helping businesses survive financially trying times, Hallstrom, Klein & Ward LLP have helped many families find a fresh start through Chapter 7The chapter of the Bankruptcy Code providing for "liquidation,"(i.e., the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors.) Click for more: Chapter 7 Bankruptcy or Chapter 13The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income. (Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.) Click for more: Chapter 13 Bankruptcy filings. In addition, they are renowned as distinguished Orange County foreclosure prevention attorneys and OC lienThe right to take and hold or sell the property of a debtor as security or payment for a debt or duty. Click for more: Lein Strip strip lawyers.