Escondido Chapter 11 Bankruptcy
If you own a business and have no other option but to declare business bankruptcy in Escondido, Chapter 11 of The Bankruptcy Code can offer some relief. Basically, Chapter 11 is a way of financial reorganization which allows a business to continue to operate.
Rather that closing the business down and liquidating its assets, Chapter 11 allows the business keep its doors open and to pay off its creditors at the same time. Because a corporation exists separately from the stockholders, Chapter 11 bankruptcy does not put the assets (except the stock) of the individuals at risk.
Business Bankruptcy in Escondido
If your company has no other option and must file for bankruptcy, you might be able to use Chapter 11 to reorganize your business in an attempt to become profitable again. While the management of the company will continue to run standard business operations, a court must approve any major business decisions.
Before you file for Chapter 11 bankruptcy in Temecula, you should realize that reorganization:
- Will not increase profits
- Create a market
- Increase gross revenue
If it is determined that your business simply has no future, Chapter 7 is the other option, which involves liquidation of the company and its assets. Keep in mind that corporations do not get discharges and therefore will not get a fresh start the way an individual debtor would. For help with filing business bankruptcy, contact the Temecula bankruptcy attorney, Marc Duxbury.
Free initial consultation for Chapter 11 in Escondido and Temecula, CA
