Both individuals and businesses can file a Chapter 11 bankruptcy, but is more commonly filed by businesses. One of the downsides to a Chapter 11 case is that it can be fairly complex and time-consuming. However, it may be the only bankruptcy option for some businesses.
Chapter 13 has strict debt limitations that makes many debtors ineligible to use it, and it cannot be used by a partnership or a corporation. A Chapter 7 filing can be used by a business, but may result in the liquidation of business assets. This leaves Chapter 11 as the best option if the filer wants to continue running the business.
In order for a Chapter 11 case to end in a successful outcome, pre-bankruptcy planning is extremely important. Chapter 11 cases can be complicated, but they can also save your business and keep you in charge of your future. Consult with a California bankruptcy attorney to learn more about how you can prepare for a successful Chapter 11 bankruptcy.
The LG LAW Ontario Bankruptcy Department can help you decide whether a Chapter 11 bankruptcy is the right choice for you. Contact us to request your no-cost consultation with one of our experienced legal advocates.