Can I continue to operate my business during a Chapter 11 bankruptcy?

Yes, you can continue to operate your business during a Chapter 11 bankruptcy in California. Chapter 11 bankruptcy allows you to restructure your debt without having to liquidate your assets. This type of bankruptcy works best for businesses that have a steady source of income and are able to reorganize their finances. During Chapter 11 bankruptcy, you can still pay your employees, vendors, and suppliers as long as you stick to the terms of your repayment plan. It also allows you to continue operating your business and generating profits. Additionally, you may be able to sell assets that are not essential to the operations of your business in order to pay off debts. The court will appoint a Trustee to oversee the bankruptcy and ensure that you are adhering to all of the provisions of the bankruptcy plan. In some cases, the court may even appoint a Creditors’ Committee to represent your creditors. This committee will negotiate a repayment plan with you that the court will need to approve. If you successfully complete the repayment plan outlined in the agreement, you will be able to keep operating your business. However, if you fail to make payments on the agreed upon repayment plan, the court may force you to liquidate your assets. It’s important that you work with a qualified bankruptcy attorney to ensure that you are following the law and protecting your assets.

Related FAQs

How do I protect my assets during a Chapter 11 bankruptcy?
What is a “prepackaged bankruptcy”?
What rights does a creditor have in a Chapter 11 bankruptcy?
What is an “effectiveness order” in a Chapter 11 bankruptcy?
Can I convert my Chapter 11 bankruptcy to a Chapter 7 bankruptcy?
How much does it cost to file for Chapter 11 bankruptcy?
How do I get my creditors to agree to my repayment plan in a Chapter 11 bankruptcy?
How long does a debtor have to confirm a plan in a Chapter 11 bankruptcy?
What is a “Chapter 11 trustee”?
Are there any restrictions on how much I can borrow during a Chapter 11 bankruptcy?

Can I continue to operate my business during a Chapter 11 bankruptcy?

Related FAQs

Related Blog Posts