Glendale Bankruptcy Attorneys Explains Business Reorganizations

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When a business lacks funds to pay off its debt, the company can file a petition called Chapter 11 Bankruptcy. Unfortunately, not all businesses can stay afloat amidst competition and changing the economy. When expenses become far greater than income, many businesses are no longer able to keep up and are forced to downsize, sell off assets, or in worse cases, go into closure. However, filing Chapter 11 Bankruptcy can help keep a business open by reorganizing debt structure.

There are many steps involved in chapter 11 bankruptcy. It first begins with the filing of a petition for bankruptcy. The benefit of this is that the petition prevents creditors from making any further collection attempts to give the company a breathing room. While the company continues to run its business, it will be the bankruptcy court that decides most of the operational decisions.

Before any major business decision can be made, the creditors get a chance to approve or deny them. This is to prevent the company from making decisions that will diminish their ability to pay back the creditors. Once the company has submitted its reorganization plan within the given time, the bankruptcy court will then review it for approval. The court will usually approve it if the plan seems satisfactory to the parties involved. The court can dismiss any plan if the business fails to follow the plan outlined in the paperwork, so having an attorney will help to avoid any pitfalls.

A chapter 11 bankruptcy attorney at JLG Lawyers explains that "it is crucial for businesses to have a bankruptcy attorney by their side from the beginning so that they don't miss any required meetings and deadlines and for coming up with the reorganization plan that will satisfy the court and creditors. Our Glendale bankruptcy attorneys are experienced at filing chapter 11 bankruptcy and can make sure that all requirements are met."

JLG Lawyers offers a free consultation to whoever needs help reorganizing their financial obligations. Call 818-630-9099 for a free case evaluation.

About JLG Lawyers
JLG Lawyers, based in Glendale, California, is a law firm that offers different legal services in areas such as Employment Law, Bankruptcy and Debt Relief, Civil Litigation, Real Estate Litigation, Tax Resolution Matters and Estate Planning.

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Name: JLG Lawyers
Address: Glendale Office, 300 W. Glenoaks Boulevard, Suite 300, Glendale, CA 91202
Phone: 818-630-9099
Website: https://jlglawyers.com/