The process involved in a Chapter 11 bankruptcy filing differs from other bankruptcy actions in that the owner of the business acts as trustee and retains possession of the business’ assets. This situation is referred to as “debtor-in-possession”, with assets and operations remaining in possession of the business. Chapter 11 also empowers the debtor with the ability to object to filing a creditor claim, filing a lien against property, oppose leases and contracts without penalty, extend time frames for repayment to existing creditors or reduce the amount owed to them.
The key to a successful Chapter 11 bankruptcy case is pre-bankruptcy planning. As is the case with Chapter 13 and, to an extent, with Chapter 7, very few Chapter 11 bankruptcy cases are completely successful when the debtor has to rush the bankruptcy petition into the bankruptcy court. Debtors will always get the best results possible when administrative burdens, gathering financial information, bringing company books up to date, and collecting other documents can be accomplished without the pressure of approaching deadlines or looming measures taken by creditors. Without proper time to fully prepare for the Chapter 11 bankruptcy process, filers often end up paying several thousand dollars for an attorney for a few months breathing room, only to end up where they started, or in a worse position with fewer options.
The Law Offices of Zhou & Chini have 11 locations throughout California to serve you. Our main focus is bankruptcy, and we file Chapter 11 bankruptcies for businesses and individuals in all Southern California counties. We will be happy to offer you a free and confidential consultation with senior partner James D. Zhou to see if filing Chapter 11 Bankruptcy is right for you or your business. If you are an small business owner or individual (not a corporation or partnership), please make certain to ask Mr. Zhou about Chapter 13 and Chapter 7 business bankruptcy in addition to getting Chapter 11 bankruptcy information. There is a distinct difference between your personal liabilities and those of your business/corporation. If the advantages are greater, we may be able to qualify you for a Chapter 7 business bankruptcy rather than filing Chapter 11. Mr. Zhou will be happy to explain all your options, so you can make an informed decision and develop a plan of action. To schedule a free consultation, visit
About the Author:
seo expert india