Los Angeles Chapter 11 Bankruptcy Attorneys
Available When You Need to Reach Us
The idea of filing for bankruptcy might seem like a terrifying option, but that is simply because many people do not really understand the consequences of this decision. In reality, when you have a mountain of debt looming over your head,bankruptcy offers a fresh start, a chance to make things right again. Not all bankruptcy plans are the same, however. While many people associate bankruptcy with creditors coming and seizing all your property and possessions, different bankruptcy plans offer you the ability to simply reorganize and manage your debt options in a more feasible manner.
Chapter 11 is a great option for those trying to avoid liquidation, and instead, simply gain time in extending their payment plans or dividing payments into smaller portions. While the benefits of this plan are tremendous, it can be challenging to navigate through the application process itself without the support of our knowledgeable Chapter 11 Bankruptcy lawyers in Los Angeles. You can depend on The Turoci Bankruptcy Firm to get you through the complex application with ease and clarity.
Call us today at (310) 846-8454 for a free, no-obligation consultation regarding all your Chapter 11 bankruptcy questions.
What Is Chapter 11 Bankruptcy?
It can be difficult to distinguish different chapters of bankruptcy sometimes since many of them use similar language and terminology. However, Chapter 11 is distinct from the other chapters in the bankruptcy code because it allows debtors to maintain more freedom and independent control over their possessions.
Unlike in other cases, where debtors may have the entirety or majority of their property and possessions taken over by creditors, Chapter 11 actually allows debtors to hold onto most of their assets. All they have to do is reorganize the obligations they are paying back into more manageable portions. Sometimes this can be done by selling a few assets just to return down payments, but it can also be accomplished through the means of actually restructuring the current debts and their timelines.
In February 2020, the government established SubChapter 5, alternatively known as the Small Business Reorganization Act (SBRA). This update was a crucial addition to the Bankruptcy Code since it now made the Chapter 11 filing process much more conducive and simple for small business owners, as well as individual debtors.
The benefit of SubChapter 5 is that it greatly diminishes costs involved, since small business owners and individuals cannot afford to pay as much as large corporations, and it also speeds up the process for bankruptcy. Our firm was the first in the state to adopt SubChapter 5, and the third in the entire country, so our attorneys are especially well-versed in SBRA.
What Are the Benefits of Chapter 11 Bankruptcy?
There are numerous advantages that Chapter 11 has over many other payment plans.
Some of the greatest benefits include:
- More independence in reorganizing your debts in smaller payments each month
- The ability to keep your business up and running while you pay your creditors, allowing you to still make profits
- You do not lose the network of your clientele base, and your company’s reputation remains strong
- High-interest loans can now be lowered
- Automatic stays are immediately set to stop creditors from harassing you or trying to collect debts
- Complex and stressful lawsuits, foreclosures, and levies can now be avoided
Completing the Bankruptcy Application
A key component of this code is that both businesses, as well as individuals, can directly file an application. However, if you have not obtained counseling for credit from a licensed credit counseling organization within 180 days of your application, you cannot file for Chapter 11 or any other application within the Bankruptcy Code. It is permissible to attend credit counseling in either a group setting or an individual setting, but it is crucial you participate in counseling sessions no matter what, or your application will be invalid.
This is just one example of a requirement you need to be eligible for Chapter 11. To understand other eligibility restrictions, you will need a seasoned attorney to help you navigate the entire application process. This is why you can turn to The Turoci Bankruptcy Firm, since our experienced Chapter 11 bankruptcy attorneys in Los Angeles are equipped with the right knowledge and strategies to aid you.
Todd, was great, He helped me to get through a rather tough time.- Eric Quinn
Thank you Mr. Turoci for assisting me with my financial situation. You and your staff (Daisy, Courtney, Laura, and Dana) were so helpful!- Kimberly Deasey
Mr.Turoci always answered my questions, and put me at ease. My only regret is that I didn't do this sooner.- Mary Cunningham
Turoci Law firm two thumbs up!- Sandra Hernandez
Mr. Turoci and his staff listened to our concerns. They were courteous, understanding and very thorough.- Lydia Gulley
Certified Bankruptcy Specialists
Todd is one of the few Certified Bankruptcy Specialists in the Central District and the only one in the Inland Empire, as designated by the American Board of Certification.
Free, No-Obligation Consultation
Our firm offers free, no-obligation consultations for those who chose to retain our services.
We can understand how challenging this process can be and will guide you through, every step of the way.
We offer our clients after-hour, weekend and same day appointments to meet your busy schedule.
When you hire us, you will have direct access to your attorney from start to finish.
Our team is bilingual! We service our clients in English & Spanish.