Chapter 11

Chapter 11 Bankruptcy

A chapter 11 bankruptcy, unlike a chapter 7 or chapter 13 filing, is the method by which corporations and partnerships in general file for bankruptcy. Chapter 11 bankruptcies allow businesses and partnerships to reorganize and negotiate a repayment plan for the businesses creditors over a specified period of time.
One of the greatest things about a chapter 11 bankruptcy is that, in most cases, the personal assets of shareholders and owners are not at risk. However, there are limitations for personal asset protections if the company in question is a sole-proprietorship.
When filing a chapter 11 bankruptcy a corporation must file a plan of reorganization with the court that spells out how the corporation intends to repay its debts. Once the court declares the reorganization plan acceptable, the corporation can begin the repayment of its debts.
To find out if you are a candidate for a chapter 11 bankruptcy filing free of charge, call the Law Offices Marshall E. Rosenbach today at (310) 860-4764.