Chapter 11 Bankruptcy Lawyers in San Diego

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Chapter 11 Bankruptcy Attorneys in San Diego

Are you grappling with overwhelming debts and financial uncertainty? Chapter 11 bankruptcy, often referred to as reorganization bankruptcy, helps both individuals and businesses restructure their debts while continuing their operations.

It’s a legal process that allows you to reorganize your unsecured debts and put an immediate stop to creditor harassment under the supervision of the Bankruptcy Court in San Diego, CA. Unlike other types of bankruptcy, Chapter 11 allows you to restructure while maintaining control of your assets and business operations.

If you are planning to file for bankruptcy under Chapter 11, consider retaining the services of an experienced San Diego bankruptcy lawyer. The filing and subsequent processes can be too complex to go through on your own.

As experienced bankruptcy attorneys in San Diego, Chang & Diamond, APC, have successfully guided many in San Diego through this intricate process. We provide a clear understanding of what Chapter 11 entails and how it can be a strategic tool for debt management and business revival.

Reach out to us for everything you need to know about bankruptcy.

The Chapter 11 Bankruptcy Process

Filing for Chapter 11 bankruptcy in San Diego is a significant step for businesses facing financial distress. Here’s a breakdown of the process:

Initiating the Process

The journey begins by filing a petition with the San Diego Bankruptcy Court. This is known as a voluntary petition because the debtor initiates it. Sometimes, the petition is filed by the creditors in what’s known as an involuntary petition.

This petition is filed alongside various financial schedules and statements that must be obtained and filled in. For individuals, you’ll need additional documents such as:

  • Credit counseling certificates
  • Statement of monthly income and any anticipated changes
  • Pay stubs or other type of pay proof

Once your petition is filed, an automatic stay goes into effect immediately. This stay puts all creditor claims and collection actions against you on hold. It also prevents new claims or actions against you from being filed.

Debtor in Possession

The debtor, now acting as a “debtor in possession,” continues to manage their assets and business operations, assuming responsibilities similar to those of a bankruptcy trustee. However, the business cannot sell assets, expand or stop operations, or stop or start a rental agreement, among other things, without court permission.

The Plan and Disclosure Statement

A key element in this process is preparing a detailed disclosure statement and a debt reorganization plan. The disclosure statement must include comprehensive information about assets, liabilities, and business affairs. The plan lays out both unsecured and secured debt and how they will be handled, and it must be filed within 120 days of the petition filing unless otherwise stated by the court. The court must approve the disclosure statement for a confirmation hearing of the plan to be held.

Meeting of Creditors

The United States trustee holds the meeting of creditors, also known as Section 341 Meeting, where the debtor answers questions by the creditors and the U.S. trustee under oath. Questions can be regarding their conduct, property, and reorganization plan.

Creditors Committee, Voting on the Plan, and Plan Confirmation

The U.S. trustee may appoint a committee of unsecured creditors composed of the seven largest claim holders to supervise the debtor’s conduct and negotiate with the debtor regarding the reorganization plan.

Once the reorganization plan is filed with the court, creditors vote on whether to approve it. For the plan to move forward, it needs to meet certain criteria and receive the necessary votes. A confirmation hearing is held, and if the court is satisfied, the plan is confirmed.

Discharge

The process culminates with the confirmation of the reorganization plan and the discharge of all debts before the confirmation, except nondischargeable ones. The confirmation binds the debtor to the terms of the plan. In the case of individual filers, the discharge is only attained after all payments are made according to the plan.

How Chang & Diamond, APC Can Help With Chapter 11 Bankruptcy Cases

Navigating a Chapter 11 bankruptcy case is often complex. This is where Chang & Diamond, APC, steps in, offering experienced legal assistance to ease the burden.

Here’s how our Chapter 11 bankruptcy lawyer can help businesses and individuals on this journey:

Paperwork and Filing 

Our San Diego bankruptcy attorneys can guide you, whether you’re a business or individual, through the complex paperwork required for Chapter 11 bankruptcy filings. We ensure all necessary forms and documents are completed accurately and submitted on time to comply with legal requirements.

Developing a Reorganization Plan

We work closely with you to develop a comprehensive reorganization plan tailored to your specific financial circumstances and goals. An experienced bankruptcy attorney can present the reorganization plan to creditors and the bankruptcy court, advocating for its approval.

Negotiating with Creditors

Our attorneys engage in negotiations with creditors on your behalf to reach mutually acceptable agreements regarding debt repayment terms. We aim to secure favorable modifications to existing loan terms, including reduced interest rates or extended repayment schedules where feasible.

Representation in Adversary Hearings

We provide vigorous representation in adversary proceedings, including creditor claims and motions, to protect clients’ interests and rights throughout the bankruptcy process. With our extensive knowledge and experience, we help you navigate complex legal proceedings and procedural requirements to achieve favorable outcomes for clients facing disputes or challenges from creditors.

Post-Confirmation Support

Once your plan is confirmed, we continue to offer you ongoing support and guidance, ensuring compliance with court orders and plan obligations. Our lawyers can help you smoothly transition to financial stability and long-term success.

Contact Chang & Diamond, APC Today

Are you struggling with the complexities of Chapter 11 bankruptcy or planning to file? Reach out to our knowledgeable Chapter 11 bankruptcy lawyers in San Diego. We can provide the necessary legal support and guidance to navigate through this challenging time.

Contact us today to schedule your free consultation.

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