Riverside Business Bankruptcy Attorney Restructures Debts of Struggling Commercial Enterprises Through Chapter 11
Helping businesses in California’s Inland Empire survive financial woes
Businesses in Riverside and San Bernardino counties that are faced with severe economic downturns and overwhelming debt can seek bankruptcy protection. In many cases, a struggling business can stay afloat through a Chapter 11 debt reorganization. The Law Offices of Michael Jay Berger has decades of experience helping businesses get through financial straits. My firm represents individuals and businesses in the Riverside-San Bernardino-Ontario metropolitan area and throughout the Inland Empire.
How Chapter 11 protects businesses
Chapter 11 allows businesses — including sole proprietorships, partnerships and corporations — to reorganize and pay off their debts while remaining in operation. My firm’s lawyers analyze a business’s assets and debts and work out a plan of repayment for court approval. A repayment plan makes debt more manageable and stops creditors from pursuing collection actions and foreclosures, while allowing the business to become solvent and continue operations. A Chapter 11 debtor has the exclusive right to file a plan of reorganization, subject to confirmation by the bankruptcy court, for 120 days after filing for bankruptcy. The court can extend this period, but once it expires, creditors or the bankruptcy trustee may file their own plans in competition with the debtor’s plan.
My firm helps clients through the business bankruptcy process from start to finish, which includes preparing and filing:
- Bankruptcy petitions
- Required bankruptcy documents, such as statements of financial affairs
- Disclosure statements
- Plans of reorganization
- Motions and responses to creditors’ motions
- Plan modifications
During a Chapter 11, a court-appointed trustee supervises the reorganization but the debtor normally remains in possession of the business. Once the repayment plan is completed, the business emerges free of overdue debt.
Subchapter V simplified debt reorganization for small businesses
A Chapter 11 can be cumbersome and expensive to be useful for small businesses. In recognition, Congress added Subchapter V, a simplified and cost-effective process that is available to businesses with aggregate secured and unsecured debts of no more than $7.5 million.
Subchapter V gives small business owners a number of advantages not available to larger businesses. Chief among them:
- The business owner remains in control, under the supervision of the bankruptcy trustee, as long as they operate the business honestly and competently.
- The business owner is the only party permitted to file a plan of reorganization. Neither the creditors nor the trustee is permitted to file an alternative plan.
- The business does not need to pay unsecured creditors.
My firm has successfully reorganized the debts of small businesses in the Inland Empire. I can determine if your business qualifies for Chapter V and, if so, explain all the benefits and requirements to you in detail and then guide you throughout the process.
Contact a business bankruptcy attorney in the Riverside-San Bernardino area
As a California board-certified specialist in bankruptcy, I have the knowledge and experience to help your business through a Chapter 11 or Subchapter V bankruptcy. Call the Law Offices of Michael Jay Berger at 310-271-6223 or contact me online to schedule a free consultation at my Riverside office.