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Why File for Chapter 11 Bankruptcy?

Help with your Business Challenges from Experienced Attorneys

While no two business bankruptcy cases are exactly the same, many of our clients have similar questions that only experienced bankruptcy attorneys can answer. But in addition to answers to your questions, the Los Angeles bankruptcy attorneys of Weintraub & Selth have the experience to answer your questions in clear language. We are also extremely adept at finding alternatives to bankruptcy. While in many cases there are alternatives to bankruptcy, sometimes filing for Chapter 11 is appropriate. We can help you answer the questions: Why file for Chapter 11 bankruptcy and when is the right time to do so?

Consideration of a Chapter 11 business bankruptcy filing is not an easy decision to make but one that many business owners must face. Maybe your business needs just a bit of monetary “breathing room” during these difficult economic times versus a more serious shutdown. If you want to continue operating your business, Chapter 11 may be the right path. Our Los Angeles business bankruptcy attorneys can help you decide.

The Chapter 11 business bankruptcy code was designed to give businesses an opportunity to reflect on their current financial situation, develop a plan of reorganization, and emerge from bankruptcy in a more financially viable state.
When to file for Chapter 11 business bankruptcy is a serious decision that requires a thorough understanding of the effects on a business entity. If you are considering a bankruptcy for your business, a Chapter 11 filing may give you the necessary financial flexibility to move ahead. The types of business entities that may file for Chapter 11 bankruptcy are:

  • Corporations
  • Partnerships
  • Sole Proprietorships

There are many nuances within the bankruptcy laws, particularly the laws that relate to businesses. To make the right decision for your business situation, it pays to seek the advice of an experienced Los Angeles business bankruptcy lawyer.

Business Bankruptcy Lawyers Explain the Advantages to Filing Chapter 11

A Chapter 11 business bankruptcy provides for negotiation and an agreement with creditors to allow the company to continue operations. Day-to-day operations go on but under the auspices of a bankruptcy court judge who oversees critical corporate decisions. Other advantages to a Chapter 11 business bankruptcy filing include:

  • Stops harassing creditors
  • Allows for the development of a business reorganization plan
  • Preserves jobs
  • Suspends lawsuits or evictions
  • Interrupts tax levies

By reorganizing the business, an opportunity for a profitable future exists. A Chapter 11 bankruptcy filing buys you time and gives you room to implement plans to get the business back on track. Restructuring your business may save the entire operation and should be considered before more drastic measures are taken.

If your goal is to save your business, keep your employees working, and get a fresh start, consider speaking with a knowledgeable Los Angeles business bankruptcy attorney who can explain the Chapter 11 process. As with any significant business decision, there are pros and cons to be considered when contemplating a bankruptcy filing in Los Angeles or elsewhere. Let us help you decide the best course of action for your business. This may or may not include bankruptcy. Call us today for a free consultation at (866) 993-7272.