Woodland Hills Chapter 11 Bankruptcy Lawyer
Serving Southern California Since 1996
At Cal West Law, we have decades of experience on our side, and we are well equipped to help you make informed, strategic decisions about the future of your business. Our Woodland Hills Ch. 11 bankruptcy lawyer, Ali R. Nader, has been personally assisting business clients for more than 24 years. If you and your business are struggling financially, let us help.
Call (818) 446-1334 today to receive a free case evaluation.
When to Pursue Chapter 11 Bankruptcy
Chapter 11 bankruptcy allows you to reorganize your business’s debts and assets in order to make repayment more feasible. Chapter 11 may be a viable, productive solution to your business debts if any of the following are true:
- You’re in a temporary financial bind because of an economic downturn. Chapter 11 bankruptcy can give you the flexibility you need to continue paying down your debts and meeting your obligations while still paying rent, making payroll, and keeping your business afloat.
- You need space to thoughtfully restructure your business’s debts. Chapter 11 gives you a set period of time to work with your attorney and create a proposal for reorganization, which must then be approved by your creditors.
- You want to disengage from business entanglements that are no longer profitable. If your business is engaged in uneconomical contracts, Chapter 11 allows you a potential way out so you can return to solvency.
Benefits of Chapter 11 Bankruptcy
In the long term, Chapter 11 allows you to get out of some pre-petition contracts and engagements, while repaying as much of your other debts as possible over a set period of time.
In the short term, filing under Chapter 11 has several significant benefits for your business, including:
- Immediate cessation of collections efforts. Once you file for bankruptcy of any kind, all of your lenders, creditors, and any associated collections agencies are legally required to halt all attempts to collect on your debt. Should they seek to shirk these rules, we are prepared to step in on your behalf and protect you from any harassment you may experience.
- Continued operation of your business. The court will allow your business to continue buying, selling, making a profit, and so on, even after you file for bankruptcy under Chapter 11. However, the court can and often does require businesses in Chapter 11 proceedings to seek court approval when entering into new contracts, selling or liquidating assets, or changing general business operations in any way, such as by expanding or cutting down the business.
- Ongoing (though limited) control of your business. Unlike other forms of bankruptcy in which the court appoints a trustee to run your business, filing under Chapter 11 allows you to retain control over your business. As the “debtor in possession,” you will be permitted to run the business as usual; however, this is not true in cases of unlawful misbehavior and debts resulting from fraud, deception, or gross incompetence. Under such circumstances, the court will appoint a trustee to run the business on your behalf.
Why You Need a Lawyer with Significant Experience in Chapter 11 Filings
Chapter 11 bankruptcies tend to be more involved, more complicated, and more expensive than other forms of bankruptcy. As a business owner, it is critical that you seek assistance from a seasoned, skilled lawyer when evaluating your options, so that you can avoid making costly mistakes and jeopardizing the future viability of your business. Attempting to file for bankruptcy without adequate legal representation could severely impede your ability to improve your financial situation, while leaving you stuck with all of the negative consequences of filing for bankruptcy, such as damaged credit and reputational harm.
Ali R. Nader is prepared to help you carefully assess your circumstances, explore all your options, and tackle your debts and obligations in the most strategic, fruitful way possible. At Cal West Law, we take special care to pursue bankruptcy only when necessary, and we can help you chart the best course forward, starting with a free case evaluation.