Understanding Chapter 11 Bankruptcy
Recently American Apparel, a LA based clothing manufacturing and retail shop, filed for chapter 11 bankruptcy. While this business had been on the rocks for the past few years, it’s fairly common for small businesses to fall on hard times and consider filing for this chapter of bankruptcy.
The attorneys at Yardley Law understand that many business owners, much to their chagrin, must consider filing for chapter 11. Our many years representing both businesses and individuals on either side of a bankruptcy, gives us a unique perspective into this interesting chapter of bankruptcy.
Chapter 11 bankruptcies are available to businesses. It can be filed by the business or by the business’s creditors if the debt meets certain requirements. Chapter 11 is interesting because the business normally provides its creditors a plan for reorganization. The business will stay alive and function with a plan to pay back the creditors in a proposed and approved amount of time.
While no business desires to file for bankruptcy, Chapter 11 can provide a beacon of light. You do not have to abandon the company you worked so hard to create; you must only restructure the company in a way that can repay the debts your company had accrued.
For more detailed explanation of chapter 11 bankruptcy and how this particular chapter can apply to your business, give the attorneys at Yardley Law a call today. We will be able to provide you with consult that can help you through this frustrating time in your business.