How can a Chapter 11 help you or your business?
Chapter 11 is used by individuals or business entities, like corporations and LLC’s, to reorganize their debts with creditors. It is a court ordered reorganization with little or no interest. The Court will review the repayment plan and then allow creditors to vote on them. Companies use Chapter 11 to put their unpaid mortgage on the back end of the loan. It can also be used to renegotiate leases and many other debts.
Who can file for Chapter 11?
Corporations and individuals with regular sources of income can qualify for Chapter 11 bankruptcy.
Bankruptcy is a great tool for a company to stay in business while reducing a lot of their debt and putting off the immediate stress of creditors and harassment.
Individuals that can’t file for a reorganization under Chapter 13 will often file for a Chapter 11. An individual must have either 1) more than $1,257,850.00 in secured debt, or 2) more than $419,275.00 in unsecured debt.
Remember, you can still use a Chapter 11 to “Cram down” mortgages to fair market value, and strip liens that become “unsecured” once we file for a Chapter 11.
What are the major benefits of Chapter 11 Bankruptcy?
How do I know if Chapter 11 bankruptcy is right for me?
Although Chapter 11 Bankruptcy is a very powerful tool, it is not always the best choice for all individuals or corporations facing financial problems.
Speak with a Los Angeles Bankruptcy Attorney today to determine if filing for Chapter 11 bankruptcy is the right option for you or your company.