Chapter 11 Bankruptcy – Reorganization for Businesses and High-Debt Individuals
Understanding Chapter 11
Chapter 11 bankruptcy in California allows businesses to restructure debt while continuing operations. For individuals, it can provide relief when debts exceed Chapter 13 limits. Though more complex, Chapter 11 offers flexibility to renegotiate contracts, reduce obligations, and chart a sustainable path forward.
The Chapter 11 Process
Filing a petition to trigger the automatic stay.
Continuing operations as “debtor-in-possession.”
Drafting a reorganization plan that restructures debts.
Creditor review and court approval.
Execution of the plan, often lasting several years.
Small businesses may qualify for
Subchapter V bankruptcy, a streamlined process with reduced costs and faster plan confirmation.
Key steps include:
Benefits of Chapter 11
- Continue business operations while restructuring.
- Renegotiate leases and contracts.
- Protect valuable assets from liquidation.
- Sell assets strategically if needed.
- For individuals with high debt, provides reorganization unavailable under Chapter 13.
Our Business Bankruptcy Experience
Shioda Langley & Chang has helped businesses across California—from Los Angeles restaurants to Sonoma-based family companies—stay open while reducing debt. Our attorneys draft practical reorganization plans and negotiate with creditors to preserve operations and secure long-term stability.
FAQs
What is Subchapter V?
A simplified Chapter 11 option for small businesses under certain debt thresholds.
Can Chapter 11 eliminate all debts?
Some debts are reduced or reorganized; many continue under modified terms.
How long does Chapter 11 take?
Plans are often confirmed within 6 months, but repayment may last years.
Plan for the Future
Chapter 11 may be complex, but it can preserve your business and protect your livelihood. Our attorneys in Los Angeles, Riverside, and Santa Rosa are ready to evaluate whether Chapter 11 is right for you.