Filing A Chapter 11 Bankruptcy In California

This article will help you understand:

• What types of companies can file a chapter 11 bankruptcy.
• What happens to property if your company owns multiple properties when filing for bankruptcy.
• The process for continuing “business as usual” after your real estate company files for bankruptcy.

Can My Commercial Real Estate Investment Company File A Chapter 11 Bankruptcy In California?

If you own a business, such as a real estate investment company, that is struggling with debt, you may want to consider chapter 11 bankruptcy.

An individual or a corporation can file a chapter 11 bankruptcy regardless of what type of business they operate. There are a few exceptions to this rule, but a real estate investment company can certainly file for chapter 11 protection.

It’s important to note that if your real estate investment company owns multiple properties, all of those properties also go into the bankruptcy estate. If there is equity in some of your properties but not others, the amount of that non-exempt equity is repaid to unsecured creditors over time.

What Happens To Each Property If My Property Investment Business Files For Chapter 11 Bankruptcy?

If you would like to sell the property, you would have to get an order from the bankruptcy court authorizing you to sell or continue to lease the properties, if that’s the business you were in.

You could refinance the properties or borrow money from investors to promote the business. However, in both of these scenarios, you would also have to get permission from the bankruptcy court.

The goal is to continue the business as you did before the bankruptcy filing. With the assistance of bankruptcy, you should be able to have a more viable business by restructuring your debt.

Can Your Firm Help My Company File For Bankruptcy In California?

Helping companies file for bankruptcy is what we do. We file chapter 11 for many different businesses, including some single-asset real estate companies.

Bankruptcy can be a difficult process for businesses and individuals alike. Give our firm a call today so we can help you better understand the options for your business and the bankruptcy process.

For more information on Filing A Chapter 11 Bankruptcy In California, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (408) 295-5595 today.