Modesto Chapter 11 Bankruptcy Lawyers
A Chapter 11 bankruptcy lawyer helps an individual or business file for a Ch. 11 bankruptcy that will allow that person or business to repay creditors over time while affording “breathing room” before payments to creditors start. Creditors can be repaid through business income, through selling assets, or combination of both.
One advantage of Chapter 11 bankruptcy is that it is possible for a business to retain its current management while reorganizing.
Chapter 11 reorganization is a complicated and expensive process, and most attempted Chapter 11 reorganizations are unsuccessful. However, Greenwell Law has a high success rate on behalf of its Chapter 11 clients. To find out if you or your business qualifies for Chapter 11, and to discuss your legal options with a respected Modesto, CA bankruptcy attorney, contact Greenwell Law today.
Chapter 11 Reorganization in a Nut-Shell
The basic goal of a Chapter 11 bankruptcy is the confirmation (formal approval) by the U.S. Bankruptcy Court of a written plan of reorganization (“Plan”) that prescribes how the person or business is going to repay creditors. If the bankruptcy court confirms the Plan, it becomes a binding contract between the debtor (the person or business in bankruptcy) and its/his creditors. The minimum amount that the creditors must receive through the Plan is the amount that they would have received if the assets if the debtor had been liquidated in a Chapter 7 bankruptcy instead. Provided that they receive at least as much as they would receive in a Chapter 7 liquidation, creditors can be paid over time from business or other income, through the sale of assets, or both. Certain kinds of debts, such as priority taxes, must be paid in full, but other kinds of debts can be repaid at pennies on the dollar. Creditors can vote on whether the proposed Chapter 11 Plan should be confirmed by; however if certain requirements are met, the Plan can be confirmed even if there are insufficient creditor votes in favor of confirmation (called “cram-down”). The Plan can be filed right away, but most debtors wait for awhile, to give themselves some breathing room.
Choosing the Right Chapter 11 Lawyer Can Be Critical
Chapter 11 practice requires a sophisticated knowledge of the U.S. Bankruptcy Code and of business itself. Most bankruptcy lawyers lack the experience and knowledge to guide clients successfully through Chapter 11 bankruptcy. However, my experience has achieved confirmation of complex Chapter 11 Plans on behalf of prominent California businesses and individuals, including construction companies, manufacturers, restaurants, wineries, petroleum retailers, real estate developers, and automobile dealers.
If you need an established bankruptcy attorney with an impressive reputation for getting results in these difficult cases, contact Greenwell Law today to schedule a FREE initial consultation.