Riverside, CA Chapter 11 Bankruptcy Lawyers Help Keep Your Business in Operation
Offering guidance and counsel in your time of need
Overwhelming debt need not close the doors of your business. By filing for Chapter 11 bankruptcy, you can pay off your creditors through a repayment plan and reorganize your business for a brighter future. Invictus Law, P.C. helps businesses in Riverside, San Bernardino and Orange counties — including Orange, Santa Ana and Irvine — find financial relief.
What is Chapter 11 bankruptcy?
Chapter 11 bankruptcy is often referred to as reorganization bankruptcy. While individuals can be eligible for it, it is a more popular option for businesses, including sole proprietorships, partnerships and corporations. Businesses tend to file under this chapter so they can keep their operations going while they tend to their financials.
The process begins with a petition being filed with a federal bankruptcy court, such as the U.S. Bankruptcy Court, District of Central California, in Santa Ana or Riverside. Certain financial information accompanies your petition, including:
With Chapter 11, debtors file voluntarily. But in business bankruptcy, be aware that creditors also can file an involuntary petition and force you into bankruptcy. In either situation, you enter an order for relief and you become the “debtor in possession,” which means that you keep possession and control of your assets while reorganizing and restructuring your business.
You need to file a written disclosure statement with the court that includes information on your assets, liabilities and business affairs, along with your plan of reorganization. Within the plan, you must address your creditors’ claims and how you will handle them. After a judicial review, there will be a confirmation hearing.
The U.S. trustee monitors your compliance with reporting requirements
As a debtor in possession, you assume fiduciary powers, which means that you account for property, review and either accept or reject creditor claims, and file reports that the court requires. You also file with the U.S. trustee, who monitors your compliance. The U.S. trustee also holds a 341 meeting of the creditors. The trustee appoints a creditor committee, which is typically comprised of unsecured creditors holding the seven largest claims against you.
An automatic stay protects you from creditors
When you file for bankruptcy, an automatic stay goes into effect. During this period, creditors cannot pursue you for collection, foreclosure or repossession. However, this period does not last forever, and some creditors may be able to get permission from the court to go after you.
Confirmation of your plan discharges your debts
A court order confirming your plan of reorganization discharges your debts through new contractual rights that supersede those before bankruptcy. Some debts, though, are not eligible to be discharged. They include:
- Debts not listed in the schedules you provided to the court when you filed
- Alimony and child support
- Malicious injuries to a person or property
- Fines and penalties to governmental units
- Certain tax claims
- Certain tax-advantaged retirement plans
Many misconceptions surround bankruptcy law. At Invictus Law, P.C., our Chapter 11 bankruptcy lawyers dispel bankruptcy myths that hold you back from a brighter financial future.
Contact us for your free initial consultation about Chapter 11 bankruptcy
Invictus Law, P.C., with two convenient office locations in Santa Ana and Ontario, California, helps sole proprietors, partnerships and corporations reorganize and restructure to repay creditors and get their businesses back on firm financial footing. Schedule your complimentary initial consultation by calling us at (949) 287-5711 or contacting us online. Se habla Español.