Are there any special provisions for filing for bankruptcy as a business?

Yes, businesses may file for bankruptcy in California. The federal Bankruptcy Code offers protections and procedures for business entities to reorganize their finances and restructure their debts. Business entities may file a Chapter 11 bankruptcy, which allows the debtor to remain in business while reorganizing their debts. In Chapter 11, the debtor must present a plan to reorganize debts and creditor payments, which must be approved by the court. This plan must include provisions for changes to the debtor’s management, as well as a timeline for repayment of debts. In California, businesses may also file a Chapter 12 bankruptcy, which is reserved for family farmers and fishermen. This chapter can provide the debtor with a more manageable payment plan, as well as tax benefits and other protections. An additional bankruptcy provision available to small businesses in California is the Small Business Reorganization Act of 2019, better known as the “Subchapter V” bankruptcy filing. This filing allows the business to remain in operation, while also providing more manageable debt payments and a quicker bankruptcy process. Businesses filing for bankruptcy in California should speak to an experienced attorney about the specifics of their financial situation, as well as the best option for filing for bankruptcy.

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Are there any special provisions for filing for bankruptcy as a business?

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