Chapter 11 Bankruptcy
Looking for a bankruptcy attorney?
According to the Small Business Administration (SBA), small businesses
significantly impact California's economy. Not only do they represent
99.2% of all employers and employ 50.4% of the private-sector labor force,
keeping small businesses in operation is crucial for all California residents.
The SBA reports that in 2010, small businesses employed 6.3 million workers,
but from 2007 to 2010, the employment situation was weak in California.
The majority of the state's small businesses are very small and 80.3%
of all businesses don't have any employees and most employers have fewer
than 20 employees. In recent years, much of the angst over California's
economy has been over jobs and whether employers are going to move to
states such as Texas.
With the number of California businesses decreasing in recent years, the
problem is more likely the disappearance of numerous businesses as opposed
to businesses leaving the state. California, much like its neighbor Nevada
was hit hard by the Great Recession, and many businesses are still struggling
from the tougher economic times.
Understanding Chapter 11
Chapter 11 bankruptcy is the primary reorganization Chapter available for
business debtors. The general goal of the Chapter 11 is to assist the
financially distressed business debtor so that he or she can restructure
and negotiate its debts with its creditors and establish a plan of reorganization
that allows the debtor to continue business operations after commencing
the bankruptcy case.
Chapter 11 bankruptcy cases are usually filed by partnerships, corporations,
and limited liability companies; however, individuals can file for Chapter
11 if their debt or income exceeds the thresholds set for
Chapter 7 and
Chapter 13 bankruptcies.
The debtor ordinarily continues business operations after it files Chapter
11; however, loses control over major decisions which are left to the
bankruptcy courts, some of which include selling real property, entering
into or breaking a lease, shutting down or expanding operations etc.
Advantages of Filing a Chapter 11
- The business debtor is protected from creditor harassment and collection.
- Creditors are assured payment from the debtor.
- The debtor creates a reorganization plan that is approved by the bankruptcy court.
- The debtor maintains rights to acquire earnings from the business but still
prioritizes to pay off the business's debts.
Why choose The Bankruptcy Law Firm?
The Bankruptcy Law Firm, in our 10 years in practice
we have assisted thousands of bankruptcy clients. Our lead attorney, Rita Kostopoulos is a
certified consumer bankruptcy specialist by the American Board of Certification and our firm has been
named one of the Top 100 Firms by Debt Education and Certification Foundation (DECAF). If your business is facing insolvency or if you don't qualify
under a Chapter 7 or 13, we urge you to get in touch with a
San Francisco bankruptcy attorney from our firm - (877) 969-7482.
The Chapter 11 bankruptcy is ideal for businesses and corporations that
wish to continue their operations while reorganizing or restructuring
their business so they are able to pay creditors while generating income.