Finding A Bankruptcy Lawyer In California
In this article, you can discover:
- The importance of experience when searching for a bankruptcy attorney
- Factors to consider when deciding if an individual or company is a good candidate for Chapter 11 bankruptcy
- Actions to avoid before filing for Chapter 11 bankruptcy
- The risks of using cash collateral without court approval in a Chapter 11 case
- Tips for finding the best Chapter 11 bankruptcy attorney in California
How Can I Find A Good Bankruptcy Lawyer?
When searching for a bankruptcy attorney, it is crucial to find someone with experience. While experience is important in all areas of law, it is especially valuable in bankruptcy. This is because bankruptcy cases often involve complex legal procedures and tactics that can only be mastered through years of practice.
In addition to understanding the bankruptcy code, a skilled attorney must also be able to anticipate the decisions of specific judges and adapt their strategy accordingly. Every judge is unique and approaches cases differently, so it is essential to find an attorney who has handled numerous cases in the same venue and is familiar with the preferences and tendencies of the judges.
At our law firm, we have a wealth of experience in handling bankruptcy cases. We have successfully represented thousands of clients and have developed a deep understanding of the judges and their expectations. This allows us to craft the most effective strategies and achieve the best possible results for our clients.
How Do I Know If My Company Or Myself Are Good Candidates For Chapter 11 Bankruptcy?
The length of time an individual or company remains in Chapter 11 bankruptcy varies on a case-by-case basis. It is generally expected to last around five years, but it is possible for a plan to be paid off sooner or for payments to be extended over a longer period of time.
There is also a subchapter V of Chapter 11 that was introduced a few years ago, which has its own set of procedural advantages and disadvantages. It is important to evaluate each case individually to determine the best course of action.
How Long Will An Individual Or A Company Remain In Chapter 11?
Before filing for any type of bankruptcy, it is important to avoid certain actions that could have negative consequences. For example, transferring away assets before filing for bankruptcy may result in those assets being recovered into the estate at a cost to the debtor and the estate.
It is also essential to ensure that the books and records are in order and readily available, as this is necessary for restructuring the reorganization plan. In Chapter 11 cases, it is especially important to have accurate financial information from the months leading up to the bankruptcy filing.
What Actions Should Be Avoided Before Filing Chapter 11?
Before filing for Chapter 11 bankruptcy, it is important to avoid certain actions that could have negative consequences. One example is transferring away assets before filing for bankruptcy, as these assets may be recovered into the estate at a cost to the debtor and the estate.
It is also essential to ensure that the books and records are in order and readily available. This is important for all bankruptcies, particularly in Chapter 11 cases, as it is difficult to structure a reorganization plan without adequate information about the debtor’s financial performance in the months leading up to the bankruptcy filing.
Can The Debtors Use Cash Collateral Without Court Approval?
Using cash collateral without court approval can be risky for debtors in Chapter 11 bankruptcy cases. This is because it may result in the case being converted to Chapter 7 bankruptcy, which is a liquidation process. For example, if a debtor uses rent from a rental property for their personal living expenses without obtaining court approval, this could be grounds for converting the case to Chapter 7.
To avoid this risk, debtors should file a motion with the court asking for permission to use cash collateral in a specific way. This usually involves paying property taxes and insurance first, as well as the first mortgage lender with a reserve for maintenance. If there is extra money left over, the court may grant permission for it to be used for other purposes.
It is also vital to obtain an order for the use of cash collateral even if there is a first and second mortgage, as both lenders have a right to the cash collateral, and the court must determine how it is paid out. It is not within the debtor’s discretion to decide how the cash collateral is used.
With the guidance of a skilled attorney for Bankruptcy Law Cases, you can have the peace of mind that comes with knowing that we’ll make it look easy. For more information on Bankruptcy Law in California, an initial consultation is your next best step.
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