Reorganize Your Business Debt in Orange County
Typically used by corporations or partnerships, Chapter 11 bankruptcy exists to help businesses and individuals reorganize and consolidate their debt. In most situations, the debtor will propose a reorganization plan that will allow them to maintain control of their company and resist liquidation. This contrasts with Chapter 7, where owners lose control of their companies and liquidation occurs.
Financial Relief Law Center, APC can help if your business in Orange County seeks debt reorganization through Chapter 11. Although this may be the most complex bankruptcy to undergo, our attorneys are experienced in handling Chapter 11 cases and helping business owners and individuals develop a plan that can keep the door to better possibilities open. If you need a Chapter 11 lawyer in Orange County to help you secure a chance at improving your financial situation by filing for a debt reorganization bankruptcy, reach out to us today for assistance.
Contact Financial Relief Law Center, APC online or by calling (949) 570-5466. We can help you arrange a free initial consultation to help you understand how our services can meet your company’s needs.
“As the process moved forward Amanda stepped in and also was very explanatory and helped me prepare for court. In the end, I am very glad I chose this firm and I would recommend them to anyone who is contemplating bankruptcy.”- J.J.
How Does Chapter 11 Work?
This type of bankruptcy won’t clear your debt, but it makes paying it off more manageable. This is done by proposing a debt repayment plan that demonstrates how your creditor will be repaid over time, amounting to a sum less than the total of what’s owed. This works because a creditor may be more inclined to accept some of the money they’re owed over the uncertainty of seeing any of it repaid. In some situations, a creditor may agree to accept less than the value of debt as payment but only if it can be immediately repaid.
There is no limit to how much debt you can owe to file for Chapter 11, which is why it’s commonly filed by businesses of all kinds or individuals with debt exceeding Chapter 13 limits (about $420,000 in unsecured debt and roughly $1.26 million in secured debt).
A Repayment Plan is Key
If you intend to file for Chapter 11 in Orange County, you will need to propose a debt repayment plan. This is no small task as you are likely dealing with substantial sums of money that your creditors will have a keen interest in reclaiming. You should only work with an experienced Chapter 11 attorney who has helped clients like you develop successful repayment plans.
Such a plan must demonstrate that it is:
- Feasible to pay creditors while covering other expenses with a sufficient revenue stream.
- A good-faith preparation within all applicable laws.
- Accounting for the best interests of the creditors, which may require proof that the creditor will receive at least as much in the debtor’s repayment plan as they would if Chapter 7 liquidation occurred.
- Fair and equitable
Any plan will bind the debtor and creditor to its terms. These may include payments at regular intervals by promising a portion of future profits, liquidation of assets, downsizing, and ever a merger or recapitalization.
Creditors, shareholders, and other stakeholders can voice their support or opposition to portions of a repayment plan or the entire document. Ultimately, however, the decision of whether or not to approve a plan will lay with a bankruptcy judge.
We Can Help You Succeed in Chapter 11
Because this type of bankruptcy is generally considered to be the most complex, you will need a capable Chapter 11 attorney to move you through the process and help you create a repayment plan. Financial Relief Law Center, APC’s attorneys have worked hard for clients like you in Orange County to make finding debt relief possible.
Contact us online to get a free consultation with an attorney who can tell you more about your options in Chapter 11.
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