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Filing for Chapter 11 Bankruptcy in Los Angeles

How Our Los Angeles Bankruptcy Lawyers Can Help You

Chapter 11 bankruptcy is known as reorganization bankruptcy and is used by businesses, including small businesses, partnerships, sole proprietorships, and corporations, to reorganize their assets to save the business and pay off debts. A Chapter 11 debtor has the exclusive right to file a plan of reorganization with the bankruptcy court for 120 days under 11 U.S.C. § 1121(b) of the Bankruptcy Code. This period can be extended by the bankruptcy court but after it expires, creditors or trustees may file separate plans with competing interests.

The Los Angeles Chapter 11 bankruptcy lawyers at the Law Offices of Michael Jay Berger help debtors work out a plan of repayment for approval by a bankruptcy court judge. Filing a repayment plan makes debt more manageable for businesses because it stops creditors from pursuing collection actions and foreclosures, and it allows businesses to restructure their assets to continue operations successfully. We help clients through the entire bankruptcy process, which includes the following:

  • Filing a bankruptcy petition
    • Filing required bankruptcy documents, such as a statement of financial affairs
    • Drafting disclosure statements
    • Filing a plan of reorganization
    • Modifying reorganization plans
    • Filing necessary motions and fighting creditor motions
    • Representing clients in adversary proceedings
  • Filing a bankruptcy petition and bankruptcy schedules
    • Completing the 7 day package. This includes advising the debtor regarding the requirements of the Office of the United States Trustee as set forth in its Guidelines and Requirements for Chapter 11 Debtors in Possession.
    • Preparing Applications to Employ Professionals, including General Counsel and Real Estate Brokers.
    • First Day Motions, including Utilities Motions, Payroll Motions, Motions to Pay Essential Suppliers, Motion to Pay Health Care Providers
    • Preparing Cash Collateral Motions
    • Preparing Valuation Motions
    • Opposing Motions for Relief from Stay
    • Assisting the Debtor in Preparing Monthly Operating Reports.
    • Filing necessary motions and fighting creditor motions
    • Representing clients in adversary proceedings
    • Drafting and amending disclosure statements and plans of reorganization

The length of time it takes to develop and present a Chapter 11 plan of reorganization depends on the circumstances of the business and its debts, but typically takes several months. I will personally analyze business assets and debts to evaluate the length and complexity of your bankruptcy proceeding.

Our experienced and successful Chapter 11 bankruptcy lawyers in Los Angeles include Ori Blumenfeld, Sofya Davtyan, Sheila Esmaili as well as our hardworking paralegals, who work under the guidance of firm founder Michael Jay Berger. Together, we help businesses restructure their operations through Chapter 11 and continue on to successful operations

I have represented the debtor in more than 100 Chapter 11 cases. In these cases, my Associate Attorneys and I have successfully prepared many types of Applications and Motions, including, but not limited to, First Day Motions, Employment Applications, Fee Applications, Motions to Sell both real and personal property, and Valuation Motions. We have successfully opposed many kinds of Motions including, but not limited to, Motions for Relief from Stay, Motions to Allow a Receiver to Remain in Place, and Motions to Convert or Dismiss. We have done every type of OUST compliance, and represented debtors at Initial Debtor Interviews, 341(a) Hearings, 2004 exams, Status Conferences, Cash Collateral Motions and other Motion Hearings. We have had Disclosure Statements approved and confirmed Plans of Reorganization.

A significant case that I represented the debtor in is In re Twelve Signs Incorporated, Case No. 2:10-bk-11758-PC. This case involved the liquidation of various intellectual property of an astrological products company, including the magazine "Star Scroll." An Order confirming the Debtor's Plan of Reorganization was entered on July 7, 2011. A Final Decree was entered on March 20, 2012.

Another significant Chapter 11 Case that I represented the debtor in is In re Rahim Zabihi, Case No. 8-10-bk-11504-TA. That case involved the successful reorganization of two veterinarian clinics and five pieces of real property. An Order Confirming Debtor's Plan of Reorganization was entered in that case on July 18, 2011. A Final Decree was entered on November 7, 2012.

On September 30, 2011, I confirmed a plan of reorganization in a Chapter 11 Case entitled In re Ludo Gust Mensch and Lorraine Patricia Mensch, Case No.: 1:10-bk-22102-MT. This case involved the successful reorganization of a construction company and two pieces of real property.

On February 3, 2012, I confirmed a plan of reorganization in a Chapter 11 Case entitled In re Moshe Segev and Michelle M. Cohen, Case # 1:09-bk-23222-GM. This was a personal Chapter 11 for a couple with 4 children under the age of 9. I successfully brought multiple valuation motions and reduced the secured debt on debtors' investment properties. My clients restructured their debts and kept 4 out of 6 properties.

On February 27, 2012, I confirmed a plan of reorganization in a Chapter 11 Case entitled In re 7 West, LLC, Case # 2:10-bk-36804-ER. This case involved the successful reorganization of a 24 unit apartment complex in Los Angeles, California. A Final Decree was entered on May 10, 2013.

On April 11, 2012, I confirmed a plan of reorganization in a Chapter 11 Case entitled In re Gregory Stephen Jones, Jr. and Eteva Desiree Laufasa, Case No.: 2:11-bk-22829-PC. This case involved the successful reorganization of the loans on the Debtors’ primary residence and both of their rental properties. I was able to successfully value the residence in order to strip off the secured second lien in the amount of approximately $221,000.00 and make that fully unsecured. I was also able to successfully value one of the rental properties in order to strip off approximately $156,000.00 and make that completely unsecured. On the second rental property, I was able to value the property in order to settle the second lien in approximate amount of $133,000.00 and strip it off for only $5,000.00.  A Final Decree was entered on October 3, 2012.

On May 23, 2012, I confirmed a plan of reorganization in a Chapter 11 Case entitled In re Hamid Doe and Farideh Doe, Case No.: 1-11-bk-17414-AA. This case involved the successful reorganization of the loans on the Debtors’ primary residence. I prepared and won a Motion for Order to Value Collateral with regards to the Debtors' home, successfully stripping off the second and third liens on the home.  By doing this, I changed a combined $258,063.00 in debt from secured debt to unsecured debt.  The plan that I confirmed settles all of the Debtors’ unsecured debt by paying out less than one penny on the dollar to Debtors’ unsecured creditors over 5 years. A Final Decree was entered on June 4, 2013.

On June 13, 2012, I confirmed a plan of reorganization in a Chapter 11 Case entitled In re Vahigh and Penah Dadayan, Case No.: 2-11-bk-14452-RK.  This was a personal Chapter 11 for a couple that wanted to keep their home and 5 rental properties.  I successfully brought multiple valuation motions and reduced the secured debt on debtors' rental properties.  My clients restructured their debts and kept ALL of their properties. A final decree was entered on May 15, 2013.

On June 29, 2012, I confirmed a plan of reorganization in a Chapter 11 Case entitled In re Leonor C Zimerman, Case No.: 1:11-bk-14045-GM. This case involved the successful reorganization of the loans on the Debtor’s primary residence and her rental property. I was also able to successfully value the residence in order to strip off the secured second lien in the amount of $184,826.43 and make that loan fully unsecured. A final decree was entered on January 7, 2013.

On June 29, 2012, I confirmed a plan of reorganization in a Chapter 11 Case entitled In re Shahin Melamed, Case No # 1:10-bk-23818-GM. This was a personal Chapter 11 for an individual Debtor. The Debtor was in bankruptcy for 16 months before he hired me.  During that time, there was little or no progress on his case.   After the debtor hired me, I reduced his secured debt by $568,000.00 as the result of a half day evidentiary hearing before Judge Mund, and, in less than four months, I confirmed a plan of reorganization for him that resolved all of his problems and let him keep his home and all of his rental properties.

On July 23, 2012, I confirmed a plan of reorganization in a Chapter 11 Case entitled In re Richard G. Miller and Shannon Miller,  Case No # 6:10-bk-31105-MJ. This was a personal Chapter 11 bankruptcy case for a retired, married couple that owned a home, rental property, and vacant land.   I reduced the Debtor’s secured debt on their home by $255,000.00 by successfully bringing a Motion for Order to Value Collateral and Avoid Security Interest.  Debtors kept all of their property.  The vacant land was re-purposed to produce agricultural income. A final decree was entered on January 28, 2013.

On December 17, 2012, I confirmed a plan of reorganization in a Chapter 11 Case entitled In re Ovazine Yvette Shannon, Case No.:2:11-bk-38912-VZ. This case involved the successful reorganization of debtor’s six multi-unit apartment building rental properties. The debtor came to me after filing three prior unsuccessful Chapter 11 bankruptcies with two different attorneys. Filing the debtor’s fourth Chapter 11 bankruptcy, I successfully overcame a 180-day bar. I then brought and prevailed on six valuation motions that reduced the amount of the secured first lien on all six rental properties, and completely stripped off the second liens on properties that had seconds, thereby rendering them completely unsecured. The plan treatment of unsecured creditors paid out seven cents on the dollar for over 5 years.

On March 27, 2013, I confirmed a plan of reorganization in a Chapter 11 Case entitled In re Arthur Melnikov and Alina Kutsevol, Case No.: 1:11-bk-11614-GM. This was a personal Chapter 11 for individual Debtors that owned a home and two rental properties. The Debtors were in bankruptcy for 15 months before they hired me. During that time, there was little or no progress on their case. After Debtors retained my services, I successfully reduced the Debtors’ secured debt on their principal residence by $201,153.00 by successfully bringing a Lien Avoidance Motion pursuant to 11 U.S.C. §506(d). I was also successful in reducing Debtors’ secured debts on their Mammoth Rental property by $280,000.00 by successfully bringing a Motion for Order to Value Collateral and Wholly Avoid Security Interest of Junior Trust Deed Holder, and by bifurcating/partially avoiding the secured interest of the first trust deed holder. Debtors were able to keep all three properties. A Final Decree was entered on September 9, 2013.

On May 1, 2013, I confirmed a plan of reorganization in a Consolidated Chapter 11 Case entitled In re Steven Michael Mehr and Larissa Deshaviegh Mehr, lead case number 8:11-bk-12166-ES, consolidated case number 8:11-bk-17014-ES. This case involved the successful reorganization of debtors’ primary residence in Orange County and 7 rental properties located throughout Orange County and Los Angeles County. The debtors wanted to keep all of their properties as a retirement plan for their future. I successfully brought and prevailed on 8 valuation motions that reduced the amount of the secured first lien on each of debtors’ investment properties, and completely unsecured the second lien on each of debtors’ properties. With over 90 creditors, I resolved numerous disputes related to creditors’ claims, including one with the City of Cudahy. The plan was confirmed with a favorable ballot received from every secured creditor in the bankruptcy, with general unsecured creditors receiving only 1.00% of the total amount of their debt.  A Final Decree was entered on April 7, 2014. 

On May 10, 2013, I confirmed a plan of reorganization in a Chapter 11 Case entitled In re Alejandro Caray Casasola and Zenaida Urmanita Casasola, Case No. 2:11-bk-47034-ER. When the Debtors hired me, they wanted three things: to keep their primary residence, to strip the second lien of $325,000.00 on their primary residence, and to work something out with Wells Fargo regarding a $500,000.00 debt. I stipulated to plan treatment with the first on Debtors’ primary residence, got the second on Debtors’ primary residence forgiven in full, and settled the Debtors’ total unsecured debts of approximately 1 million dollars, including the $500,000.00 Wells Fargo claim, by paying out only six cents on the dollar over 5 years. My clients got everything that they wanted.  A Final Decree was entered on August 28, 2013.

On June 5, 2013, I confirmed a plan of reorganization in a Chapter 11 Case entitled In re Vicente Zarate and Ingrid R. Zarate, Case No.: 2-12-bk-16597-PC. This case involved the successful reorganization of the loans on the Debtors’ primary residence and their multiple rental properties. The Plan also provided for the successful sale of one of their income properties. I was able to successfully value the debtors’ properties in order to bifurcate the secured claims on all three of the Debtors’ income properties as well as the second lien on Debtors’ primary residence, stripping off approximately $3,416,000.00 in secured liens. I was also able to successfully cram down the objecting classes and pay only 1% over 5 years to the debtors’ general unsecured creditors who were owed approximately $7.2 million.

On October 1, 2013, I confirmed a plan of reorganization in a Corporate Chapter 11 Case entitled In re CDG Materials, Inc., Case No.: 6:12-bk-12935-MH. This case involved the successful reorganization of a corporation principally engaged in the business of manufacturing and selling various types and grades of gravel and sand. For over 28 years, the debtor was a well-known and trusted name within the construction community for its high-quality production of sand, gravel and crushed rock. The debtor's reputation was compromised and nearly lost when the corporation's income was overwhelmingly outweighed by its liabilities to various creditors. I successfully negotiated plan treatment stipulations with the debtor's main creditors and convinced 100% of the creditors that voted on the plan to accept the plan. The plan was successfully confirmed, with general unsecured creditors receiving only 2.82% of the total amount of their debt.

On November 6, 2013, I confirmed a plan of reorganization in a Chapter 11 Case entitled In re Jamal Elyazal, case number 6:12-bk-11709-MW. This case involved the successful reorganization of the loans on the Debtor’s primary residence and his 17 rental properties. I was able to successfully value the debtor’s properties in order to bifurcate the secured claims on all three of the Debtors’ income properties as well as the second lien on Debtors’ primary residence, stripping off approximately $4,400,000.00 in secured liens. I was also able to successfully cram down the objecting classes and pay only 1% over 5 years to the debtor’s general unsecured creditors who were owed approximately $6.2 million. This case set the record in the Santa Ana Division of the Central District for most properties reorganized in an individual Chapter 11 case.  A Final Decree was entered on March 19, 2014. 

On December 11, 2013, I confirmed a plan of reorganization in a Chapter 11 Case entitled, In re Martha Gutierrez and Aaron Gutierrez, Case No # 2:12-bk-32047-WB. This case involved the successful reorganization of the loans on the Debtors’ two rental properties.  I was able to successfully value both properties in order to strip off secured liens in the approximate amount of $464,398.00. I was also able to obtain a consensual plan amongst all of the Debtors’ creditors and pay the general unsecured creditors, who were owed approximately $1,055,000.00, only 1% over 5 years.  On May 30, 2014, the Debtors obtained their Order of Discharge.

On May 5, 2014, I confirmed a plan of reorganization in a Chapter 11 Case entitled In re Ruth Hasson, Case No. 2:13-bk-15138-RK.  When the Debtor hired me, she wanted only one thing: to save her home from being lost in foreclosure. We saved her home. The day before the trustee sale, we filed a Chapter 11 petition.  We stipulated to plan treatment with the lender that holds the First Deed of Trust on her home and settled her unsecured debts at a large discount, with payments to be made over 5 years. 

 

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