Are there any restrictions on how much I can borrow during a Chapter 11 bankruptcy?

Yes, there are restrictions on how much you can borrow during a Chapter 11 bankruptcy in California. It depends on if the debt is secured or unsecured. Generally, you are allowed to borrow secured debt up to the value of the security, but unsecured debt is more limited. For example, if you are in a Chapter 11 bankruptcy and have a house with a mortgage loan secured on it, you can borrow up to the current value of the house, as long as you continue to pay the mortgage loan. In contrast, if you are in a Chapter 11 bankruptcy and are trying to borrow unsecured debt, such as a credit card, there are limits on how much you can borrow. Typically, you can borrow up to $1 million of unsecured debt, but only if it is for the purpose of reorganizing your business. Additionally, the court must approve any new debt you incur in a Chapter 11 bankruptcy. This includes whether the debt is secured or unsecured, and how much you can borrow. Before you can borrow any debt during a Chapter 11 bankruptcy, you must show the court that it is necessary for your business to take on the debt and how you plan to repay it.

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