Orange County, CA (PRWEB) January 20, 2013
Filling for Chapter 11 bankruptcy in Orange County permits the reorganization of the business under the bankruptcy laws of the United States. Chapter 11 bankruptcy is available to all kinds of businesses, whether organized as a corporation or partnership, or limited liability company. Chapter 11 is also available to individuals, but due to high cost and time associated with Chapter 11, only individual with a lot of assets and high amount of debts typically for bankruptcy protection under Chapter 11. Because of its complexity, the bankruptcy attorneys are offering free consultations for individuals seeking more information about Chapter 11 bankruptcy. The law office of Zhou and Chini are well versed in bankruptcy law and are offering this free service to help give options for those in need. For more information about the bankruptcy attorneys in Orange County, or about Chapter 11 bankruptcy Orange County information visit, http://bankruptcyattorneyorangecounty.org/chapter-11-bankruptcy-orange-county.
Under the provisions of Chapter 7, the business filing for such must cease operations and a trustee shall be ordered to liquidate all the assets of the business. The trustee shall also have the duty to distribute the proceeds to the business creditors. If in case there is any residual amount, the same shall be returned to the owners of the business. When a business files for Chapter 7 that means that it is the end of the line for the business. As such, most principals of the business favor the filing of a Chapter 11 in Orange County if such is possible. In most instances, the debtor shall remain in control of its business operations as what is called a “debtor in possession, and is subject to the oversight of the United States Trustee’s Office and the bankruptcy court itself. Essentially, the debtor acts as the trustee of bankruptcy estate subject to oversight by the aforementioned third parties. The debtor may be removed as the de facto trustee for cause if the Court finds the debtor engaged in abusive conduct.
The provisions of Chapter 11 also afford the debtor in possession of the business with a number of mechanisms to restructure his business. There exists opportunities to acquire financing and loans with favorable terms which may give the new lenders first priority on the business earnings and/or holdings. The Court may also order the debtor in possession of the business to reject and cancel contracts. Chapter 11 in Orange County also authorizes the court to issue an automatic stay. The impositions of the stay encompass, among other things, all pending litigation against the debtor until resolution in the bankruptcy court or they are allowed to resume in its original court.
Chapter 11 also requires that the debtor presents a valid bankruptcy plan in order to facilitate the payment of the business obligations. The bankruptcy plan shall include a re-organizational structure of the business or personal assets and debts of the debtor. The plan may also include the manner of liquidation of the business assets. Said plan may be presented by any party in interest or by the debtor himself. The creditors of the business may vote for a plan. The plan shall be subjected to confirmation by the bankruptcy court for as long as the same shall not discriminate against a class of creditors and that the same is equitable to that class. After confirmation, the plan shall become binding. For more information about bankruptcy and the different Chapters involved speak to an experienced bankruptcy lawyer at, 888-901-3440
Chapter 11 also adheres to the priority scheme of paying creditors. The general rule is that all secured creditors who have a security interest or collateral will be paid before the unsecured creditors. The rule also includes that all priority debts must first be paid before the next level creditors are accommodated. To illustrate, the claims of suppliers of products or employees of the company may be prioritized before the claims of the other unsecured creditors are settle.
The Orange County bankruptcy attorneys use the best SEO professionals to assist in law firm marketing to promote the message about the importance of speaking with a bankruptcy lawyer in Orange County CA. The attorneys continue their online presence by offering zero cost bankruptcy information on bankruptcy firms blog and social media pages. This information along with free consultations the firm hopes to attract more Orange County residents looking for financial relief. To read more about the firms bankruptcy attorney Orange County Facebook page visit, https://www.facebook.com/BankruptcyAttorneyOrangeCounty
About the Firm: The Law Office of Zhou & Chini servicing the cities and counties of California. He is a graduate of UCLA and has been practicing law since 1999. Mr. Zhou has a wealth of experience in bankruptcy, civil litigation, family law, criminal law and unlawful detainer. Zhou and Chini Law Offices provide bankruptcy assistance in Orange County, Los Angeles and San Diego
Contact: Ron Chini