Are you considering filing for bankruptcy for your business or individual finances? There are several different types of options, depending on your unique situation. While Chapter 7 involves liquidation and Chapter 13 involves a payment plan, Chapter 11 is referred to as the reorganization chapter.
Our firm has more than 65 years of combined experience providing representation to people experiencing difficult financial situations. We prioritize you by listening to your concerns, answering your questions, and listening to your goals for the future. If you’re ready to begin filing for bankruptcy, let us help you understand your options. Our Beverly Hills bankrupty attorneys are backed by decades of experience and have handled hundreds of cases for clients!
Contact us today to learn how we can help you.
This type of bankruptcy is very common among business owners who are having difficulty staying afloat and would like to stay open. It is considered one of the most debtor-friendly options. At Nass Law Firm, we have helped guide many individuals and businesses through the Chapter 11 process. In Chapter 11 bankruptcies, the business owner is allowed to keep his or her business through the reorganization of debts in a payment plan. The debtors prepare a disclosure statement that describes their proposed restructuring proposal and payment plan. The plan is then voted on by various creditors and submitted to the court for final approval. There is no limit to the amount of debt that can be discharged or repaid under Chapter 11 bankruptcy, and there is also no time limit for its duration. As a business owner in Chapter 11 bankruptcy, you would be known as a debtor in possession (DIP), which means you would act as your own trustee.
Unlike a Chapter 7 bankruptcy, the ultimate goal of Chapter 11 is to make a profit eventually. Your first priority is to renegotiate leases and contracts, either having debts discharged or partially paying them back. Creditors do have an incentive to work with you and compromise because they generally would get more profit from you than in a Chapter 7 liquidation.
The creditors with the highest priority are federal tax agencies, employees owed wages and stockholder interests. Every secured creditor is also put in its own class, while unsecured claims are placed in a separate category.
It is not required for you to hire a Beverly Hills bankruptcy lawyer if you decide to file. However, it is critical that you have experienced representation on your side. Chapter 11 bankruptcy can be time-consuming, risky, expensive, and complicated. However, for some businesses, it is the only option if they wish to restructure and continue operating, especially if the establishment is owned by a partnership, limited liability company, or corporation.
In a Chapter 11 bankruptcy, a committee is usually appointed to represent the interests of unsecured creditors. The creditors’ committee can retain attorneys and other professionals at your expense, which is part of what makes this type of bankruptcy so expensive. The sooner you can resolve on a plan, the less expensive the process will be. An experienced bankruptcy attorney can help you speed up the procedure.
At the Nass Law Firm, we can help guide you through the process and ensure that everything goes smoothly. We are very knowledgeable in this field and can help protect all of your assets while putting together a plan of reorganization.
If you have excessive debt that seems impossible for you to repay, you will need to retain legal counsel to guide you. With more than 65 years of combined legal experience, we are here to help in any way we can.
A few of the factors to consider when you are weighing your options include:
Our firm knows how to analyze the circumstances of your business or personal assets effectively. We can help you to determine if Chapter 11 is appropriate, such as if you truly want to save your business and believe that you can have success in the future. We can also help you organize and negotiate the terms of your plan more quickly and efficiently, allowing you to save more money to invest in your business.
Call us now at 310.935.0663 to get started with a free initial consultation.