Chapter 11 Bankruptcy Attorney
Chapter 11 or “reorganization bankruptcy” is mostly filed by struggling companies to help restructure their business. Individuals whose debt exceeds Chapter 13 limits or who own substantial nonexempt assets can also file Chapter 11 bankruptcy. Similar to Chapter 13, Chapter 11 filings must include a written plan of reorganization and a disclosure statement that lists assets, liabilities, and business affairs. If the company fulfills its obligations throughout the 4-5 year process, Chapter 11 can give them a fresh start. However, Chapter 11 is one of the most expensive and complex forms of bankruptcy, so hiring a good law firm is absolutely necessary.
Bankruptcy Attorney Ventura 805-644-7111
Bankruptcy is a process by which individuals or businesses can repay or eliminate some or all of their debt under the supervision of the Federal Bankruptcy Court. There are two major categories of bankruptcy: liquidation and reorganization. In liquidation, the person or company sells (liquidates) property to pay back debt. Some property may be protected (exempt) from liquidation, depending on the situation. On the other hand, reorganization is an attempt to extend the life of a company. It includes the restatement of assets and liabilities and a restructuring of the payment system to help the company pay its creditors more reliably. There are several types of bankruptcy, denoted by chapters, and each covers different situations and follows its own specific regulations. Here we’ll go into detail about Chapters 7, 11, and 13.
In Chapter 7 bankruptcy, some property may be liquidated to pay off debts, but often much of the property will be exempt
Chapter 11 or “reorganization bankruptcy” is mostly filed by struggling companies to help restructure their business.
Chapter 13, also known as “wage earner bankruptcy”, requires a reliable source of income that can be used to pay off some of the debt.