California Bankruptcy - Handling Business Bankruptcy
Businesses have long taken advantage of the benefits that bankruptcy has to offer, especially in a struggling economy. By reorganizing debt under a Chapter 11 bankruptcy and renegotiating terms on financing with creditors, it is possible to streamline and rebuild many companies, allowing them to emerge from bankruptcy healthier and more viable as a whole. For businesses that cannot be salvaged, Chapter 7 bankruptcy offers an expedient, professional means to liquidate the business, pay off creditors, and eliminate any further financial obligation – thus freeing the business owner to seek out more profitable opportunities.
Business bankruptcy, or Chapter 11, works by renegotiating your business’ financial obligations with your creditors. You will be expected to file a repayment plan within the first 120 – 180 days of filing your case. If you fail to do so, your creditors will be given an opportunity to file a plan on your behalf, so it’s important to move expediently when it comes to meeting bankruptcy deadlines. Depending on the size of your business, you may also have to work with a committee of your creditors, who will oversee your actions during the reorganization process.
During the course of your California Chapter 11 bankruptcy, you will still be able to make purchases and payments that are routine and essential for your business. Unlike an individual reorganization bankruptcy, business bankruptcy provides the means for you to continue to make purchases, pay employees, and generally manage your business without seeking prior approval from the bankruptcy court. However, if at any time your creditors or the bankruptcy trustee feel that you are acting counter to the best interests of your business, the bankruptcy judge may implement restrictions on your business behavior. Additionally, you will not be allowed to enter certain types of transactions which might put a creditor at risk for loss.
Because the nature of many businesses is complex, handling a California business bankruptcy case requires skill and expertise that cannot be left up to a general practitioner of law. You need someone who has experience with California Bankruptcy Law, and who fully understands how bankruptcy laws will affect your business in both the short term and the long term. You can ensure that your business bankruptcy is handled professionally by hiring an attorney who specializes in California bankruptcy law.
Our firm has years of experience when it comes to handling business bankruptcy – for both small businesses and larger corporations. Our California Bankruptcy attorneys put your business first in our considerations when it comes to handling your California Chapter 11 bankruptcy case. We understand the need to have solid legal representation to handle any complications that may arise, and to ensure that you meet all of the deadlines imposed by the courts. If your business needs bankruptcy protection, contact us today. We will arrange for a free, no-obligation case evaluation for your business, and help you to fully understand the options you have for preserving your business, and taking advantage of California Bankruptcy Protection.