11500 W Olympic Blvd Ste 400, Los Angeles, CA 90064
 
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Chapter 11 Bankruptcy Attorney Rick Baum in Los Angeles, CA

 

What is Chapter 11 Bankruptcy?

Whether a business or individual files under this section of the bankruptcy code, it allows debtors great flexibility in how they pay off their debts. It may be possible to reduce the amount of a secured debt, lower the interest rate on that debt or make changes to the payment schedule. Unlike other forms of bankruptcy, the person or company that filed for protection pays creditors directly according to the reorganization terms all parties agreed upon.
 
Signing - Bankruptcy in Los Angeles, CA
 
While Chapter 11 bankruptcy was originally intended for businesses, the Supreme Court has ruled that individuals may be eligible to use it as well. In many cases, individuals who have filed for Chapter 11 have done so after shutting down their small businesses. This form of bankruptcy allows individuals to maintain their homes and other assets while reorganizing their debt.

In some cases, those who file may be able to retain their businesses once their case is settled. Individuals who file for Chapter 11 bankruptcy may also do so when they have more than $383,175 in unsecured debt and $1,149,525 in secured debt, which would make them ineligible for Chapter 13 bankruptcy.

If you need help with business debt or don't think that you qualify for Chapter 7 or 13 bankruptcy, call Rick today. During your free consultation, he can review your financial situation to determine if Chapter 11 bankruptcy is right for you.