Southern California Chapter 11 Bankruptcy Attorney

Experienced Legal Representation for Businesses in the Inland Empire, Orange County, and West Los Angeles

Chapter 11 bankruptcy permits reorganization under federal bankruptcy laws and is available to businesses, from sole proprietorships to large multinational corporations. Though primarily a legal tool for corporations, Chapter 11 bankruptcy is also available to individuals with substantial debts or complex portfolios (multiple real estate holdings or complicated investment holdings). When a business entity can no longer pay its debts , the business may file for protection under Chapter 11. If you are a business owner in Southern California and cannot pay your business debts, please talk to an experienced bankruptcy lawyer about your situation. Fransen & Molinaro has over thirty years of experience successfully handling all bankruptcy matters. A Southern California bankruptcy attorney at F&M can evaluate your business's financial status and devise a plan of action for you.

Chapter 11 Bankruptcy

Chapter 11 is a reorganization strategy rather as opposed to a liquidation. In most Chapter 11 cases, the debtor business retains control of its operations as a "debtor in possession" though it is subject to the oversight of the bankruptcy court. The debtor in possession acts as the trustee of the business and may even acquire financing or loans with favorable terms in return for giving new lenders priority on future business earnings. Debtors in possession may also be given court permission to reject and cancel existing contracts and escape liability under those contracts. Protection from litigation against the business may also be granted by the court through and automatic stay which stalls litigation until the debts issues are resolved in bankruptcy court.

If business debts exceed assets, restructuring may result in the owner's rights and interests being lost and the creditors taking ownership. Chapter 11 debtors generally have a 120 day period for a restructuring plan. After that time period has elapsed, creditors may propose plans. In order for plans to be confirmed by bankruptcy courts, creditors must vote to approve the reorganization plan. Thus, time is of the essence. The lawyers of F&M will work quickly to keep your business running while creating a Chapter 11 plan.

Consult with a Southern California Chapter 11 Bankruptcy Lawyer

If you see no way out of your business debts, we highly recommend that you seek legal counsel. Your livelihood and your future are at stake. Contact a Southern California Chapter 11 bankruptcy lawyer at Fransen & Molinaro to discuss your legal options today!