Business Bankruptcy Attorney Los Angeles
Chapter 11 Bankruptcy – Restructuring and Reorganizing
The decision to file business bankruptcy is a difficult one. Focusing on what Chapter 11 accomplishes and the new start it presents may make that decision easier. Remember that the objective is a restructuring of the business to allow you to operate profitably again. Reducing the burden of debt through reorganization allows the business to continue to generate revenue over an extended period of time, while also meeting debt obligations.
It is appropriate to use the Chapter 11 bankruptcy code when there is a good chance that the going concern can remain viable when it emerges from bankruptcy as a stronger business entity. Other beneficial elements of a Chapter 11 filing include:
- Creation of a positive return for shareholders
- Ability to continue business operations
- Repayment to creditors
The rehabilitation of debt is one of the primary goals behind a Chapter 11 business bankruptcy filing. To that end, a well-developed business reorganization plan is an essential element of the business bankruptcy filing. It is through the use of a confirmed reorganization plan that debts are satisfied (even for a fraction of their original amounts) and the business can return to daily operations without the scrutiny of the creditors and the courts.
Seeking the advice of a qualified business bankruptcy attorney should be your first step. Choosing a bankruptcy lawyer who knows the ins and outs of the system can smooth out the bankruptcy process and get you on the road to profitability sooner.Goals Behind Chapter 11
As you move through the Chapter 11 process, the goals for your business will become more defined. In general, these outcomes are what many businesses strive for:
• Developing a plan of reorganization that sets new terms and conditions between the business and its creditors
• Significantly reducing the debt load of the business and restructuring the remainder of the debt
• Creating a new debt repayment plan that incorporates longer maturity dates and more favorable interest rates
Accomplishing these goals sets the business up to return to a profitable state and avoid liquidation. It’s a win-win situation not only for the business owner, but also for creditors who can see a clear path to repayment.
Why You Need A Business Bankruptcy Attorney
Negotiation with creditors is a delicate process best left in the capable hands of a seasoned business bankruptcy attorney. Many creditors welcome a capable middleman who is knowledgeable and professional. Hiring an experienced business bankruptcy lawyer provides you with the best representation of your case in front of the bankruptcy court and frees up your time to focus on running the newly restructured business.
Call today to schedule a free consultation and find out what options you have for your business needs.
