When a California business has been struggling to pay its debt, it is time to consider business bankruptcy. Business bankruptcy in Newport Beach CA is a legal process in the federal court system that can help California businesses discharge or repay debt under the supervision of the bankruptcy court. Businesses can file bankruptcy as a reorganization or liquidation depending upon their circumstances. Bankruptcy is a serious choice, so it is advisable to contact an attorney experienced in business bankruptcy in Newport Beach CA in order to understand all your legal options.

Chapter 11 bankruptcy is a good option for California businesses that may have a future. This type of business bankruptcy permits businesses declaring bankruptcy to continue to operate under the direction of a court-appointed trustee, which may be the company’s owner. In a Chapter 11 bankruptcy, the business is reorganized in order to more efficiently pay business creditors. A business files a plan of reorganization detailing how creditors will be paid, and the business’ creditors then vote on the plan. Chapter 11 reorganization plans provide for payments to creditors over an extended period of time, allowing businesses to get ahead financially.

Chapter 11 bankruptcy is available to many types of businesses, including sole proprietorships, Limited Liability Companies (LLCs), as well as corporations. These types of bankruptcy filings are especially complex, and not all are approved by the bankruptcy court. Chapter 11 business bankruptcies that are court approved usually take over a year to reach resolution. Before you file for bankruptcy, be sure to consult with a local bankruptcy attorney for advice about which bankruptcy option is best for your business.