Chapter 11 Bankruptcy

Chapter 11 Bankruptcy

Business and Individual Debt Reorganization

Chapter 11 Bankruptcy Attorney in Los Angeles & Orange County

Chapter 11 bankruptcy offers businesses and individuals flexibility in reorganizing their debts, allowing you to maintain control over assets while paying off creditors. At The Law Office of Richard T. Baum, we help clients across Los Angeles and Orange County navigate the complexities of Chapter 11, offering legal guidance to restructure debts and achieve financial stability.

Whether a business or individual files under this section of the bankruptcy code, it allows debtors great flexibility in how they pay off their debts. It may be possible to reduce the amount of a secured debt, lower the interest rate on that debt or make changes to the payment schedule. Unlike other forms of bankruptcy, the person or company that filed for protection pay creditors directly according to the reorganization terms parties agreed upon and which the court determines passes many tests.

How Chapter 11 Bankruptcy Works

Understanding Chapter 11 Bankruptcy

Flexibility in Debt Repayment for Businesses and Individuals in Los Angeles & Orange County

Chapter 11 bankruptcy allows debtors to reorganize their debts, which can include reducing secured debt amounts, lowering interest rates, and adjusting payment schedules. Whether you’re a business or an individual with significant debt, Chapter 11 offers the ability to maintain control of your assets while working toward financial recovery. This form of bankruptcy is particularly helpful when other bankruptcy options, like Chapter 7 or 13, don’t apply.

While Chapter 11 bankruptcy was originally intended for businesses, the Supreme Court has ruled that individuals may be eligible to use it as well. In many cases, individuals who have filed for Chapter 11 have done so after shutting down their small businesses which incurred very substantial secured and unsecured debt. This form of bankruptcy allows individuals to maintain their homes and other assets while reorganizing their financial affairs.

In some cases, those who file may be able to retain their businesses once their case is settled. Individuals who file for Chapter 11 bankruptcy may also do so when they have more than $419,275 in unsecured debt and $1,395,875in secured debt, which would make them ineligible for Chapter 13 bankruptcy.

If you need help with business debt or don't think that you qualify for Chapter 7 or 13 bankruptcy, call The Law Office of Richard T. Baum today. During your free consultation, he can review your financial situation to determine if Chapter 11 bankruptcy is right for you.

FAQ

FAQs About Chapter 11 Bankruptcy

Your Questions Answered by a Trusted Los Angeles Bankruptcy Attorney

Filing for Chapter 11 bankruptcy can seem overwhelming. Here are some common questions clients ask about the process, eligibility, and benefits of reorganization under Chapter 11. Discover how this option can help you regain control over your financial future.