Los Angeles Chapter 11 Bankruptcy Lawyer
Chapter 11 of the United States Bankruptcy Code permits reorganization of a business under the bankruptcy laws of the United States. A Chapter 11 Bankruptcy (Entitled Reorganization for Businesses or High Net Worth Individuals) is typically employed by commercial enterprises that desire to continue operating as a business and repay creditors concurrently through a court-approved plan or reorganization. Most people are not aware that a Chapter 11 Bankruptcy is also available to individuals. In fact, Chapter 11 reorganization is useful to help individuals restructure their personal debts.
The Benefits of filing a Chapter 11 Bankruptcy for High Net Worth Individuals
Unlike a Chapter 7 Bankruptcy, a Chapter 11 Bankruptcy can be a better option for high net worth individual debtors. Unique to Chapter 11 Bankruptcies, individual debtors can restructure their debts as a debtor-in-possession of their bankruptcy estate utilizing similar legal powers and tactics of trustees. Contrary to a Chapter 7 Bankruptcy, a petitioner in a Chapter 11 Bankruptcy under a plan of reorganization is given the opportunity to sell or restructure existing assets of its choice to satisfy existing debt obligations. As your own trustee in Chapter 11 Bankruptcy, the debtor becomes a “debtor in possession” and allows the trustee debtor to decide what assets are to be sold to pay off debt and what assets are to be retained. Unlike a Chapter 7 Bankruptcy, where a third party trustee or the court decides what assets are sold to satisfy debts, a Chapter 11 Bankruptcy gives the individual debtor the unique opportunity to control what assets in his estate are to be sold. Thus, a Chapter 11 Bankruptcy permits relief to individuals who do not want to risk losing specific assets in a Chapter 7 Bankruptcy and who need more flexibility regarding what assets are to be liquidated to satisfy pre-existing debt obligations.
Moreover, unlike a Chapter 13 Bankruptcy, a Chapter 11 individual petitioner does not need to follow the tight time lines of paying back debt or to adhere to the limits on the amount of debt that can be reorganized.
Deciding on what assets to retain and what assets to sell can be difficult. The experienced attorneys and staff at Khansari Law can help you make these tough decisions regarding asset management. In addition, we can structure an ordered distribution of how creditors will be paid and over what period of time.
With the assistance of the experienced attorneys and staff at Khansari Law, you can restructure real estate debt, catch up on delinquent payments and restructure unsecured debt by lien stripping qualifying assets.
Moreover, the experienced attorneys and staff at Khansari Law will walk you through the process to make sure that you are fully complying with all aspects of a Chapter 11 Bankruptcy petition.
The Benefits of filing a Chapter 11 Bankruptcy for Businesses
Unlike a Chapter 7 Bankruptcy where the business ceases it operations, a Chapter 11 Bankruptcy (Entitled Reorganization for Businesses or High Net Worth Individuals) for businesses empowers a trustee to operate the debtor’s business. Unless a separate trustee is appointed, the business owner debtor becomes a “debtor in possession” and is given the liberty to act as a trustee for the business. Thus, like a Chapter 11 Bankruptcy for individuals, a Chapter 11 Bankruptcy for a business affords the “debtor in possession” a number of mechanisms to restructure its business entity.
Better stated, a Chapter 11 Bankruptcy for businesses gives a business time to organize itself, time renegotiate debt with creditors and an opportunity to relieve itself of burdensome leases and executory contracts that it may have entered.
Although supervised by the bankruptcy court, a Chapter 11 Bankruptcy is a good option when a business has sufficient prospects to continue its operations if provided with debt relief and/or an opportunity to restructure to once again operate at a profitable level.
Chapter 11 Bankruptcy Solutions – Affordable Fees
Unlike other firms where fees are demanded up front in the form of a large retainer fee, at Khansari Law we understand financial pressure that you are experiencing. While most mid-sized companies cannot afford expensive retainers and are either deprived of their right to file Chapter 11 Bankruptcy or are forced to compromise their legal representation by retaining a sub-par firm, we at Khansari Law have addressed that dilemma. By taking smaller retainers before filing your bankruptcy petition and accepting further monthly deposits thereafter, we at Khansari Law are able to focus on your bankruptcy and alternative to bankruptcy options. Bankruptcy is a complex legal procedure. At Khansari Law, our attorneys and staff have years of experience in working with every aspect of bankruptcy.
To discuss your immediate legal needs and future financial goals with the experienced attorneys and staff at Khansari Law, please do not hesitate to call our offices at 818.650.6444. You may also e-mail us now at email@example.com to answer any of your questions or to request a consultation to discuss your bankruptcy or alternative to bankruptcy options.