Riverside Chapter 11 Bankruptcy Attorney
What Is Chapter 11 Bankruptcy?
Chapter 11 bankruptcy is an option for a business or individual struggling financially to satisfy their debt by reorganizing their affairs rather than liquidating them. It offers debtors the ability to work alongside their creditors and bank to pay down their debt over time. The court decides how much of their debt the filer is able to repay and offers some relief accordingly, either by dismissing earned interest on the original debts or by absolving a percentage of their owed amount.
If you are struggling with debt and interested in filing for bankruptcy in Riverside, we are here to help.
Call (951) 784-1678 to discuss your debt relief options.
Who Qualifies for Chapter 11 Bankruptcy?
Chapter 11 is more accessible to those facing financial hardships than other filing options. There are no debt limits as there are in Chapter 7 or Chapter 13, and the repayment doesn’t have to be fulfilled within the five-year limit Chapter 13 outlines. Chapter 11 also allows for struggling businesses to file, and to continue operation while preventing the onslaught of more debt.
What Is the Process of Applying for Chapter 11 Bankruptcy?
Our attorneys will help Riverside residents and businesses apply for Chapter 11 bankruptcy by first filing a petition for relief in our local US Bankruptcy Court. After filing and paying the necessary fee, the debtor becomes a “debtor in possession.” All creditors will receive a “Notice of Bankruptcy.” This notice details specifics for the meeting of creditors which will occur within a few weeks of the filing date. At the meeting of creditors, or 341 meeting, creditors may attend to ask the debtor questions regarding their repayment.
Debtors under Chapter 11 are entitled to continue operating their business. Throughout the repayment period, our attorneys can help with monthly operating reports and more.
Within 120 days of filing, the debtor files a reorganization plan. This purpose of this plan is to:
- Identify debts
- Identify how many of the creditor claims are classified as priority, secured or general unsecured
- Provide a breakdown of how much each debt will be repaid
- Detail methods on how the debtor will repay the debt
- Plan how the company will run while repaying the debt
The debtor must also submit a disclosure statement alongside the reorganization plan. This statement should include:
- What happened that led them to file for bankruptcy
- In-depth financial information that creditors can use to accept or reject the plan
- The debtor’s plan for a more successful future
The reorganization plan is a detailed proposal for how (and how much) the debtor intends to repay his creditors. There is a disclosure hearing where the creditors may respond, and classes of creditors can accept when voted in favor of the plan with a two thirds majority.
While businesses may continue operating after they file, the bankruptcy court now must approve any major financial decisions the business wishes to make.
What Are the Benefits of a Chapter 11 Bankruptcy?
Chapter 11 benefits eligible companies and individuals by allowing them to continue running their business or avoid repossession. In either case, it protects the filer from having their assets liquidated to repay debts. By saving their business and possessions, the debtor reaps the benefits of having time to repay their debt while avoiding collection activities and foreclosures. Companies are instead able to focus on fixing the weak points of their business that initially led to their financial ruin and eventually resurrect themselves as a stronger organization afterwards.
Contact one of our attorneys for assistance rebuilding your financial situation.
Great process- Former Client
I would recommend them to anyone looking to file bankruptcy.- Former Client
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
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.