Chula Vista Chapter 11 Lawyer

How a Chula Vista Bankruptcy Attorney Can Help

Chapter 11 bankruptcy is typically filed by businesses, corporations, and also by individuals with large amounts of debt and high assets who do not qualify to file under Chapter 7 or Chapter 13 bankruptcy.

Although complicated and limited, Chapter 11 offers a good path for businesses and people who are facing certain unique circumstances. Our bankruptcy attorney in Chula Vista can help you examine your options and determine if Chapter 11 is the ideal course of action for you.

How Can Chapter 11 Bankruptcy Resolve My Business Debt?

In Chapter 11 bankruptcy, the goal is to find a reorganization plan that will be approved by a bankruptcy court. This plan will set out exactly how you will repay what is owed, serving essentially as a contract.

Our team at Denton Law Group can help you create a feasible plan that will enable you to achieve the fresh start you need. We believe that preparation and planning is key to a positive outcome.

By working hard to create a thorough plan complete with extensive documentation, we set our clients up for success.

How Long Does It Take to File Bankruptcy Chapter 11

If and when your bankruptcy plan is accepted, you will be headed towards financial relief and a chance to start again. In most cases, your Chapter 11 bankruptcy proceedings may take up to 2 years, depending on your circumstances.

During this time, you may still be allowed to continue your business operations with limited control, if the court consents. 

The timeline for filing Chapter 11 bankruptcy varies based on case complexity and cooperation among the parties involved. The process involves multiple stages, including preparing and filing the bankruptcy petition, developing a reorganization plan, obtaining creditor approval, and court confirmation.

The initial filing of the bankruptcy petition typically takes a few weeks. After filing, the debtor operates as a "debtor-in-possession" and formulates a reorganization plan to restructure debts and achieve financial stability.

Developing and gaining approval for the reorganization plan can take several months or longer, depending on case complexity and creditor cooperation. This stage involves negotiations, discussions, and potential plan modifications to address creditor concerns.

Once the reorganization plan is finalized and approved by the majority of creditors, it is submitted for court confirmation. The court reviews the plan, holds a confirmation hearing, and assesses its feasibility. This process may take several months and involve objections or challenges from creditors or other parties.

The entire Chapter 11 bankruptcy process can range from several months to several years, depending on the case's specifics. Consulting with a bankruptcy attorney is crucial to understand the estimated timeline for your situation.

Debtor in Possession

After you file a petition for your business, you will be considered a “debtor in possession”. This differs from both Chapter 7 and Chapter 13. You may be able to do some business as usual, but you will need court approval for anything that falls beyond those limited actions. It is a transitional stage where you can try to salvage as much value as you can from your assets while your creditors still have a legal claim.

Being a debtor in possession can help you avoid liquidation and fire-sale prices, which is beneficial to both you and your creditors. Your creditors have a strong say in the process, but you are allowed a chance to recover through reorganization.

What is Involved in Chapter 11 Reorganization?

A few decisions involved in your reorganization plan under Chapter 11 will include:

• A proposal for how much each creditor should be paid.
• A meeting with a court-appointed committee of major creditors.
• A submission by the creditors of their desired modifications to the plan.
• A vote by the creditors to accept or reject the plan.

The legal part of your bankruptcy is over when ⅔ of the creditors accept the reorganization plan. Your debts will be replaced by the new debts confirmed by the court. Not all debts will be able to be discharged in this way, but our Chula Vista Chapter 11 bankruptcy lawyers can ensure that your debts will be resolved as much as possible.

Bankruptcy Can Offer a Fresh Start

Many successful businesses and companies have filed Chapter 11 bankruptcy at some point, including:

• Six Flags
• United Airlines
• Samsonite
• General Motors
• Abercrombie & Fitch

If you are considering Chapter 11 bankruptcy, you are in good company. Don't view bankruptcy as a death sentence but as a fresh starting point and the chance to begin again.