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Home > Chapter 11 Bankruptcy
Chapter 11 Bankruptcy Lawyers in Orange County California
Chapter 11 bankruptcies are more complex bankruptcies for businesses or individual debtors. Although they can be drafted as a liquidation bankruptcy like a Chapter 7, most Chapter 11 bankruptcies are reorganization bankruptcies that aim to repay most or all of the debts and preserve assets for the debtor after the bankruptcy is completed. Chapter 11 reorganization enables businesses to continue operating, during and after the bankruptcy. The theory behind a Chapter 11 is that the estate will either remain in business, or much more money will be available for creditors if the business is liquidated in a measured way rather than at a fire sale price. Please contact us to discuss questions that you may have that are related to Chapter 11.
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For more than 30 years, our attorneys have focused on helping individuals and families. Discussing your eligibility for a chapter 11 bankruptcy with an experienced attorney will help you to know how to gain financial freedom and stop calls from harassing creditors.
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Chapter 11 bankruptcies permit a competent debtor to retain control of assets and business operations during bankruptcy, instead of automatically surrendering control to a bankruptcy trustee. Since Chapter 11 bankruptcies begin with the debtor having the powers, duties and responsibilities of a bankruptcy trustee, the Chapter 11 debtor and their attorney are more fully involved. The benefit to a Chapter 11 debtor is greater control over their own affairs in the bankruptcy process.
Chapter 11 bankruptcies involve a plan that must be confirmed by the Court. The plan describes the income, necessary expenses, assets and debts of the debtor and the terms for a reasonable payment against these debts.
The Chapter 11 plan will divide all creditors into classes, and devise separate repayment schemes for the various classes of creditors. The plan must pay each class at least as much as they would obtain in a Chapter 7 liquidation bankruptcy. Each class of creditors will vote for or against the plan.
At the start of the bankruptcy the debtor has exclusive ability to propose a Chapter 11 plan. If the debtor cannot obtain confirmation of his own plan over time, the creditors can propose their own bankruptcy plans to the Court.
A successful Chapter 11 bankruptcy requires planning, preparation, negotiation and detailed execution. The duties of a Chapter 11 debtor can depend on factors such as whether the debtor is an individual, a partnership, or a corporation, and upon the size of the business. Since the payout to creditors under a hypothetical Chapter 7 bankruptcy is one measure of the fairness of a Chapter 11 plan, the hypothetical liquidation value of the debtor's estate must be calculated. Obtaining creditor approval before submitting the bankruptcy plan to the Court can speed confirmation. Once a bankruptcy plan is confirmed, the terms must be honored over time as with a regular contract between the parties. Our retainer agreement will be tailored to your situation to fulfill your legal needs while enabling you to conduct your business.
There are many approaches available to a business debtor who needs a new arrangement with her creditors and suppliers which preserves their business relationship. Our attorneys will work with you and create a strategy for a successful reorganization.
Contact us by calling 714-730-8202 or on-line to schedule an initial consultation.
Hosford & Hosford, Inc., A Law Corporation
17821 East 17th Street, Suite 295
Tustin, CA 92780-2163
Telephone: 714-730-8202| Fax: 714-730-1959
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At the Orange County, California law offices of Hosford & Hosford, A.L.C., we provide experienced consumer bankruptcy representation to clients in cities including: Tustin, Irvine, Orange, Anaheim and Santa Ana.
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| Orange County Bankruptcy Attorneys - Chapter 7 Bankruptcy, Chapter 11 Bankruptcy, Chapter 13 Bankruptcy
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The information you obtain at this site is not legal advice. For legal advice, consult an attorney for advice regarding your own situation.
Copyright © 2012 by Hosford & Hosford, Inc., ALC. All rights reserved. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include this copyright statement. Site by Custody Match Designs. |
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