Can I Save My Business Through Bankruptcy?
A San Francisco bankruptcy lawyer addresses business and bankruptcy questions such as Can I Save My Business Through Bankruptcy?
What is Chapter 11 bankruptcy?
Business owners often want to know whether bankruptcy can “save my business.” Chapter 11 of the Bankruptcy Code is known as the “reorganization” chapter, allowing businesses and individuals with large debts to restructure operations in order to repay creditors without having to defend lawsuits or lose property.
How will Chapter 11 save my business?
Filing a chapter 11 reorganization will allow a business owner to restructure their debts and often pay a small percentage of what is owed to creditors. Filling a chapter 11 also stops collection actions, allowing some breathing room for the business owner to work on a reorganization plan.
What does a reorganization plan involve?
Those business owners who ask “can I save my business” also want to know what chapter 11 involves on their part. Generally, a business owner will list their creditors, both secured and unsecured, as well as whatever property is associated with the business. If the business employs individuals payroll records are also reviewed. A business owner who files chapter 11 will usually still remain in control of the operations, but will be required to fill out monthly reports detailing all incomes and expenses. A chapter 11 might also include the selling of unprofitable business ventures or inventory.
Can filling chapter 7 bankruptcy save my business?
No. While chapter 7 is an option available to corporations, it involves liquidation of assets to repay creditors. Chapter 7 is not set up to allow for any type of business reorganization.
If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!
