Proper Guidance for Los Angeles Business Owners Going Through Chapter 11 Bankruptcy

Respected California attorneys advise debtors in possession

Sometimes, your business is weighed down with debt to the point where its future is in jeopardy. Fortunately, a Chapter 11 bankruptcy gives companies the chance to keep the doors open while making substantive changes that put the operation in a better financial position. The Law Office of Michael Jay Berger has decades of experience helping business leaders like you do just that.

What does Chapter 11 mean for active businesses?

Chapter 11 bankruptcy allows businesses to continue operating free of creditor harassment while restructuring financial obligations. There are several ways to reduce a company’s debt load by revising existing agreements and streamlining internal operations. With a sound plan, a business can regain stability, allowing it to emerge from the Chapter 11 process intact and able to invest in its future. We can explain how the Chapter 11 process works in more depth when you consult us.

Benefits for business owners 

Chapter 11 bankruptcy offers your business several potential advantages:

• An automatic stay stops any debt collection efforts as soon as your creditors receive notice that you filed for bankruptcy.
• Filing also makes you a “debtor in possession” (DIP), which enables you to remain in control of your business and have powers similar to that of a bankruptcy trustee.
• As a DIP, you may be able to obtain financing needed to keep your business operating, even if it means borrowing more money.
• You may negotiate the terms of your reorganization plan with your creditors and obtain court approval, even if some of your creditors object.

We can help you maximize these benefits.

Operational management during bankruptcy

Debtors in possession operate their businesses under the supervision of the court and the U.S. Bankruptcy Trustee. Although you must file periodic reports on your business, you will deal primarily with the trustee and can usually do so without involving the creditors’ committee. We will help you deal with the trustee and the court.

Common challenges faced by Chapter 11 debtors in possession

Businesses in Chapter 11 bankruptcies may encounter some challenges, such as:

• Compliance requirements — You can rely on us to prepare materials required by the trustee and to answer any questions you have about these documents.  
• Client confidence — Filing for Chapter 11 bankruptcy might cause a temporary loss in reputation or goodwill, but with a solid plan, things should be business as usual for clients and customers.  
• Cash flow management — You need to satisfy the requirements of your debt reorganization plan, which may require you to cut costs while revenue is used to repay creditors.
• Fiduciary responsibilities — As a DIP, you owe a fiduciary duty to your company’s creditors, which can restrict your freedom of operations and require you to get the court’s consent to take some types of significant actions.

As your Chapter 11 lawyer, you can rely on our careful advice and skillful representation to help you tackle these challenges.

How skillful bankruptcy counsel helps clients in various industries

Chapter 11 bankruptcy can affect different types of businesses in different ways. Some specific concerns for companies in various industries include the following:

• Healthcare organizations — Maintain standards of patient care while simultaneously restoring financial solvency
• Service-based businesses — Minimize or eliminate gaps in service during the Chapter 11 process so that customers don’t find new providers
• Manufacturing companies — Ensure payroll and equipment maintenance so that operations can continue smoothly
• Real estate operations — Keep property in a livable, marketable condition through landscaping, cleaning and repairs
• Food service operations — Reach workable agreements with wholesalers and other suppliers

We tailor our advice and representation to the specific needs of your particular business, no matter what its nature.

Contact an accomplished California Chapter 11 bankruptcy lawyer

Based in Beverly Hills, the Law Offices of Michael Jay Berger represents clients in Chapter 11 bankruptcy proceedings throughout Southern California. Call our firm at 310-271-6223 or contact us online for a free consultation.