Many struggling businesses need the protections offered by Chapter 11 bankruptcy, but Chapter 11 is not the right choice or even feasible for every business with heavy debt. Chapter 11 is highly procedural and costly in terms of money and time, and there may be better options for debtors and creditors alike.
Before filing for bankruptcy, business owners should explore every available out-of-court option for dealing with the debt. Going to bankruptcy court can be costly, and it is important to get comprehensive legal advice before taking that step.
If your business is having debt troubles and facing possible insolvency, then it is important to be aware of every debt relief option. While filing for bankruptcy is appropriate in many cases, debts can also be settled without going to court.
When there are multiple creditors in Chapter 11 bankruptcy, each creditor has its own interests to protect. However, banding together as a committee is often advantageous to unsecured creditors and helps them maximize the amount they recover.
Whether you're a business owner with heavy debt, a creditor seeking to collect, or a bankruptcy trustee, it is important to know how the Chapter 11 bankruptcy process works and how the case will be monitored by the court.
Bankruptcy and other insolvency-related matters can be extremely complex, especially if there are many parties involved. Whether you're a creditor, debtor or trustee, a single slip-up could expose you to costly liability, and it is crucial that you have experienced legal counsel to identify the important issues and aggressively protect your interests.
Risk is a part of business. You can take action to minimize risk, but there may still be unforeseen events that result in losses. The Bankruptcy Code takes into account risk and offers protections for debtors and creditors. At Shulman Hodges & Bastian LLP, we help businesses choose the appropriate debt relief option, whether it's restructuring the business through Chapter 11, a liquidation under Chapter 7, an out of court workout, an assignment for the benefit of creditors, or a formal dissolution.
Rechargeable hybrid vehicles are gradually becoming more visible on roads in California and throughout the country, and most of the major car manufacturers have indicated their intention of competing in the luxury hybrid market. One of the first companies to enter that market was Anaheim-based Fisker Automotive.
A number of relief options are available for businesses with heavy debts. Depending on your financial situation and how your business is structured, there may be out-of-court solutions such as a negotiated settlement with creditors or debt restructuring. In other cases, the best option may be business reorganization through Chapter 11 bankruptcy.