Let Us Help: Restructure Your Business With Chapter 11 Bankruptcy Document Services
While opening a business can be an exciting and profitable venture for many, it can be stressful and overwhelming to consider what to do if your business is struggling to profit for an extended period. However, California business owners can revitalize their business efforts while repaying accrued debts by filing for Chapter 11 bankruptcy. Let Us Help paralegals are available to guide you through this process pro se with affordable legal document preparation and filing services.
What is Chapter 11 Bankruptcy?
Chapter 11 bankruptcy requires the submission of a reorganization plan that allows you to repay your creditors over time. Many large businesses use this for their reorganization efforts. While small businesses can also benefit from a Chapter 11 filing, it is an option for business owners who may not qualify for Chapter 13 bankruptcy.
There are two types of Chapter 11 bankruptcy petitions:
- Voluntary petitions are filed by the business
- Involuntary petitions are filed by creditors
Chapter 11 bankruptcy applicants are given four months to reorganize, but in some cases, you may be given as much as 18 months to plan how you wish to restructure. When you reorganize your debts, each credit is placed into its own class, with all unsecured in a separate category. Some debts will take priority over others, and must be paid first.
Chapter 11 filings can benefit businesses in a variety of ways, including:
- Allowing your business to operate during the debt repayment period
- Debtors can partially repay unsecured debts
- Automatic stay judgments keep creditors from soliciting you at your home or business
- No debts are considered nondischargeable with a Chapter 11 filing
- Business owners can restructure secure debts to fit their income
Relief from debt collection efforts
When you file your paperwork with your local bankruptcy court, the automatic stay goes into effect. This rule prevents debt collectors from contacting you, and you now have legal protection from creditors seeking repayment. If creditors still attempt to contact you, the courts may penalize them. If a debt collector contacts you, give them your bankruptcy case number.
Chapter 7 bankruptcy can alleviate the stresses of repaying many common types of debt, including that associated with credit cards, cell phones, utilities, personal loans, and lawsuits. The obligation to repay these debts is removed once the court enters your bankruptcy discharge. Some debts, however, cannot be discharged, including:
- Student loans
- Child support
- Government judgments and penalties
- Some housing fees
- Some tax obligations
Improve your credit
This is especially crucial because most Chapter 7 bankruptcy filings are for individuals with credit scores below 600. By providing debtors with a clean slate, they can then re-establish themselves financially with a variety of strategies, including:
- Procuring a secured credit card
- Becoming an authorized user on another person’s credit card
- Making and adhering to a budget
Fees indicated below do not include filing, recording, or courier service charges.
Chapter 11 Bankruptcy
Starting at $1,500
Let Us Help’s Chapter 11 Bankruptcy package aims to assist business owners with debt repayment and reorganization after experiencing economic hardship. This process is designed to allow business owners to maintain financial security.
When you need pro se Chapter 11 bankruptcy filing services in California, Let Us Help is here to help you reorganize your business. For more information about the bankruptcy options available to you, or to get a quote for your Chapter 11 document preparation and filing needs, call us today at 877-490-0068.