Law Office of Marc Weitz

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Personal Chapter 11 Bankruptcy



For individuals with businesses, large real estate holdings, and/or are over the limits required for a chapter 7 or 13, a chapter 11 may be the answer. Individuals who file for chapter 11 are usually successful people who have run into bad times and need to use the bankruptcy process to reorganize just as a business would.

A chapter 11 is much more complex and involving than the chapter 7 and 13's, so it's important to use this option only if the chapter 7 or 13 doesn't fit the individual. Despite that, a chapter 7 can be a lifesaver for those who need it and use it effectively.



aFTER FILING FOR BANKRUPTCY



In bankruptcy, you are allowed to continue to run your own affairs, barring any exceptional circumstances. You become a Debtor-in-Possession, meaning you are in control of your bankruptcy.

Once you’ve filed for bankruptcy an automatic stay comes into effect, temporarily stopping any foreclosures or repossessions. Additionally, creditors must leave you alone. If they continue to harass you, they can be liable for damages. This stay gives you time to reorganize.

Bankruptcy Law offers you advantages to help you get on your feet. Here are a few examples:



THE POWER TO VOID CONTRACTS



Bankruptcies can rid you of burdensome contracts.


An individual may accept or reject contractual obligations. Rejected contracts are no longer obligated to be performed. However, the counter party becomes an unsecured creditor. In the case of leases, the damages are capped.



DIP Loans



A person in bankruptcy can approach lenders for new sources of money to continue their affairs. A DIP lender is given priority over your other creditors as an incentive to lend you money.



reduction of debt



The objective of chapter 11 bankruptcy is to confirm a plan, through the court, with your creditors so that you may continue to handle your affairs and pay off your creditors. I will put together a plan to reorganize your debts in a sustainable way. Creditors know they are often better off taking less money and working with you than allowing you to fail and getting much less or nothing. This makes creditors open to negotiation.



WHY HIRE AN ATTORNEY



My job is get you all the rights you deserve, protect your assets, and guide you through the complexities of a chapter 11 bankruptcy. I can help you to get through these tough times.



The above is for informational purposes only and does not constitute legal advice. Please seek advice from counsel.



call or email for a free first consultation




323-600-4805

633 West 5th Street, Suite 2800

Los Angeles, CA 90071


marcweitz@weitzlegal.com




Law Office of Marc Weitz