Chapter 11 Bankruptcy in San Jose, CA
San Jose, California bankruptcy, Chapter 7, Chapter 11, and Chapter 13
The Law Offices of Gloria A. Florendo provides excellent services to assist clients with filing Chapter 11 in San Jose.
What is a San Jose Chapter 11 bankruptcy?
Large corporations use Chapter 11 bankruptcy to restructure their companies and discharge debt. Similar to Chapter 13, Chapter 11 has a repayment plan that extends over a period of three or five years. Unlike Chapter 13 however, no limits exist for the amount of debt a Chapter 11 can address. Because of the expense and complexity involved, most individuals seeking bankruptcy do not file Chapter 11, but file Chapter 13 instead.
How debtor in possession or trustee supervision applies
In many cases, the company debtor assumes the role of debtor in possession. This means assets remain in the company’s possession under new management and the court oversees business operation to benefit creditors. The debtor in possession acts as the company fiduciary unless the court determines the management to be ineffective or fraudulent. In such cases, the court assigns a trustee to manage the company’s finances.
Dealing with creditors in San Jose Chapter 11
The debtor proposes a repayment plan which the court must find acceptable and creditors must agree on by voting. The San Jose Chapter 11 process provides an opportunity for a company to regain profitability. If unable to do so, the company may end up liquidating assets or passing ownership to creditors.
Chapter 11 advantages
The court grants a Chapter 11 debtor in possession the following capabilities:
§ Ability to acquire capital or loans from new lenders
§ Ability to cancel or decline contracts
§ Freedom from creditor collection efforts under an automatic stay
Arrange a consultation to discuss Chapter 11 bankruptcy in San Jose
The Law Offices of Gloria A. Florendo encourages prospective clients to arrange a consultation. Providing as much information as possible in advance allows our legal team to begin an assessment of your case. However, initial contact to arrange a consultation does not establish an attorney-client relationship.
Call 408-916-3040 or contact us online today to arrange a confidential, no obligation consultation to discuss a San Jose Chapter 11 bankruptcy.
A federally recognized Debt Relief Agency, the Law Offices of Gloria A. Florendo meets federal qualifications, working with individuals and businesses to file for bankruptcy relief under the Federal Bankruptcy Code, which includes Chapter 7, 11, and 13 bankruptcies.