Los Angeles Chapter 11 Bankruptcy Attorneys
Business Reorganization Guidance from Experienced Lawyers
Los Angeles Chapter 11 bankruptcy attorneys at Weintraub & Selth are prepared to assist you. As a business owner, you may have questions about bankruptcy that only experienced lawyers can answer. The Los Angeles Chapter 11 bankruptcy attorneys of Weintraub & Selth have been helping business owners like you through the Chapter 11 reorganization process for several decades and our attorneys are ready to answer all of your questions. When you contact us for a free and no obligation consultation, our Los Angeles Chapter 11 bankruptcy attorneys will go into more detail about the business bankruptcy timeline. Below is a brief overview:
- When you file for business bankruptcy protection under Chapter 11, you have up to 120 days to submit a plan of reorganization to the court. Typically this plan includes precise details on how you plan to restructure your business debt. Your plan may involve repayment extensions, adjustments to interest rates, or debt relief. Our attorneys can help you formulate a plan and submit the proper documentation for this complex process. We can also answer all of your questions about bankruptcy and guide you through the process from start to finish.
- Once we help you develop a plan and it is proposed, the plan must be approved by a majority of the creditors and confirmed by the court. The bankruptcy court will also determine the feasibility of any proposed reorganization plan.
After the 120-day period has passed, any interested party may file a competing reorganization plan with the court. Such competing plans often include provisions for the liquidation of some of the debtor’s nonexempt assets. This plan may also be considered and approved by the court. These interested parties may include creditors or stockholders, and if a trustee is appointed, the trustee may also file a bankruptcy plan. Such plans often include provisions for the liquidation of some of the debtor’s nonexempt assets and may also be considered and approved by the court.
- The bankruptcy trustee has the ability to organize the interested parties who do not fall into a category of secured creditors into an “official committee of unsecured creditors.” The trustee may also create committees for secured creditors, holders of liens, or even for employees of the business. While any of these interested parties may file a competing reorganization plan, there is no guarantee their plan will be confirmed by the court. At every step of this process, you may have questions. We have decades of experience in this area of the law and have helped countless businesses emerge from bankruptcy.
- If the reorganization plan you originally proposed was developed with the expertise of a Los Angeles business bankruptcy attorney, your odds of a successful confirmation increase dramatically. There are many key points and numbers that figure prominently in any bankruptcy reorganization plan; consulting a qualified business bankruptcy lawyer is a sound business decision.
If the Reorganization Plan is Rejected
With our skilled Los Angeles business bankruptcy attorneys on your side, you will greatly improve your chances of having your plan approved. However, in some business bankruptcy cases, one or more classes of creditors will reject the reorganization plan. There are many reasons why a creditor may object to the proposed plan including:
- Arguing that the debtor does not meet the technical requirements of a Chapter 11 filing
- Challenging the valuations made by the debtor in the proposed plan
- Lack of detailed financial projections to determine the success of the plan
If you cannot come to an agreement with the creditors who object to the plan, you may seek relief under the cram down provisions of the bankruptcy code. This scenario allows a plan previously rejected by one or more creditors to be approved by the bankruptcy court as long as it is deemed to be fair, equitable and not discriminatory against any class of creditors. Our Los Angeles business bankruptcy attorneys can assist you with this step if it becomes necessary.
Confirmation and Completion of a Chapter 11 Bankruptcy Reorganization Plan
Once the reorganization plan is proposed and confirmed, you will be discharged from all debts filed in the plan. Following confirmation, the debtor’s property is free and clear of liens and encumbrances unless they were preserved in the plan documents. The terms of the confirmed reorganization plan, including any repayment conditions, must be adhered to by both the debtor and the creditors. Your chances of getting your initial plan confirmed increase exponentially if you have the right Los Angeles Chapter 11 attorneys working with you. From the start of the process until it has ended, we can position you for successful completion.
The Chapter 11 bankruptcy process is complicated for people unfamiliar with its intricacies. The process is best navigated with the help of a seasoned lawyer on your side. Call our law firm today for a free consultation and for the peace of mind that comes from having an experienced Los Angeles Chapter 11 attorney on your side.