With the economic changes in Sacramento, the small business owner has been forced to evaluate all debt and credit options and an attorney can help explain these.  Contracts that were once profitable may now be causing a loss for the business.  If the owner stops performing under the contract the business may face a lawsuit which would further impede progress for the business.  Leases are the most common contracts for small companies and you may have already tried to negotiate or modify the terms.  Chapter 11 gives the business owner the option to continue with the business while avoiding harmful contracts and leases and while limiting obligation for damages according to the structure and terms of the Plan that the business owner creates and obtains approval for.

In some cases, individuals have too much debt to qualify for Chapter 13, or they wish to extend the life of their plans beyond five years.  Here, a Chapter 11 can be an option to provide for long term plans, higher debt limits, and great secured debt modification.

Contact us to schedule your free initial consultation to find out how we can help you.