Chapter 11 Bankruptcy
An incorporated business typically files chapter 11 bankruptcy to restructure the business by proposing a formal chapter 11 plan of reorganization. However, individuals can also file a chapter 11 case in applicable circumstances, particularly in cases where debt limits rise beyond the eligibility limits for a chapter 13 filing.
Voluntary out of court workouts are generally preferable to filing for chapter 11 bankruptcy; when that is impossible, chapter 11 is a viable option. For example, bankruptcy may be feasible in cases where lenders are inclined to extend working capital after a chapter 11 filing, or where creditors with impaired claims can be forced to comply under a chapter 11 bankruptcy plan.
For a general and basic understanding of chapter 11 bankruptcy, please refer to the official U.S. Court website.
At JCH Law Firm, our Southern California Bankruptcy attorneys help individuals and businesses file for chapter 11 bankruptcy. Attorney Jeffrey Hsu has analyzed chapter 11 issues during the time he worked for a bankruptcy judge and the U.S. Trustee’s Office. He has reviewed monthly operating reports, disclosure statements, motions for substantive consolidation, and requests to arbitrate findings of claims. Jeffrey Hsu also has experience advising unsecured creditors in chapter 11 bankruptcy cases.
Because chapter 11 bankruptcy is a legally and procedurally dense area of law, we suggest that you call or contact us for more information about the chapter 11 process.