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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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We are a small restaurant. How can we qualify for Chapter

Resolved Question:

We are a small restaurant. How can we qualify for Chapter 11 bankruptcy so that we can keep running the business but have protection against litigation?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 5 years ago.
Welcome to JustAnswer,

So sorry to hear of this dilemma. If my answer is not clear to you, please ask me for clarification by using the reply button.

A small business may file for chapter 11 bankruptcy. A Chapter 11 bankruptcy would allow the business to reorganize its debt. The Chapter 11 is commenced by filing a petition with the court. Typically Chapter 11 bankruptcies are very involved and require an attorney with specifics Chapter 11 bankruptcy experience. You can expect fees upward of $10,000 to file

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Customer: replied 5 years ago.
We would like to know what kind of conditions we have to meet to be eligible for filing bankruptcy? Is there an income limit?
Expert:  Ellen replied 5 years ago.
There are no specific conditions or income limitations to file a chapter 11 bankruptcy.. Instead you must file the petition with the bankruptcy court in the area where the business is located. A filing fee of $1000 and $46 administration fee must be included with the filing.If you tell me where your restaurant is located, I can direct you to the forms
Customer: replied 5 years ago.
Our restaurant is in Dublin, CA. We want to continue running the business while bankruptcy is filed. Do we need to go for chapter 11 or 7? Thanks for clarifying.
Expert:  Ellen replied 5 years ago.

A chapter 7 does not appear appropriate. A chapter 7 is a liquidation and would require that you immediately stop operating the business upon filing

A Chapter 11 bankruptcy would allow you to continue to operate the business as a debtor-in-possession

You may find a wealth of information on filing bankruptcy in California at these links:
Ellen and other Bankruptcy Law Specialists are ready to help you