Chapter 11 Bankruptcy Attorney in Encino

Over 7,500 Cases Filed. Trusted Chapter 11 Counsel in the San Fernando Valley.

At RHM LAW LLP, we’ve spent more than 20 years helping businesses and individuals in Encino restructure debt and move forward. Our team understands both federal bankruptcy law and California-specific regulations, which means we can build a strategy tailored to your situation rather than a generic template. Whether you’re a small business owner trying to keep the doors open or an individual carrying debt beyond the Chapter 13 limits, Chapter 11 offers a path to reorganize, and we know how to navigate it.

We offer 30-minute complimentary consultations by phone or online, available the same day you reach out. Our team consults in English, Spanish, and Farsi, removing language barriers for Encino’s diverse business community.

Don’t wait to get answers. Call (213) 344-0043 or contact us online to schedule your 30-minute complimentary consultation. Se habla Español.

What Chapter 11 Can Do for Your Business

Chapter 11 is a reorganization bankruptcy. It lets you restructure your debts while keeping your business operating. Unlike Chapter 7, which stops operations and liquidates assets, Chapter 11 gives you time and legal protection to renegotiate leases, supplier agreements, and other obligations on terms you can actually meet.

Our role is to conduct a thorough analysis of your business’s financial picture: assets, liabilities, cash flow, and contract obligations. From there, we develop a capital restructuring strategy focused on preserving business value, improving liquidity, and building a reorganization plan that holds up in court. We address what’s urgent now while keeping your long-term stability in view.

Why Encino Businesses & Individuals Choose RHM LAW LLP

Experience matters in Chapter 11. These cases are complex, the procedural requirements are demanding, and the stakes are high. Here’s what we bring to every engagement:

• Proven Track Record: We’ve filed or overseen more than 7,500 bankruptcy cases across more than two decades of practice.
• Multilingual Access: Consultations in English, Spanish, and Farsi serve the full range of the San Fernando Valley’s business community.
• Same-Day and Video Consultations: Flexible scheduling so you can get answers quickly, on your terms.
• Transparent Communication: Regular case updates keep you informed at every stage, so nothing comes as a surprise.
• Central District Familiarity: M. Jonathan Hayes has served on the panel of mediators for the Bankruptcy Mediation Program of the U.S. Bankruptcy Court Central District of California since the program’s inception in 1995.

Chapter 11 cases filed by Encino residents and businesses are handled through the U.S. Bankruptcy Court for the Central District of California. Local judge practices, procedural expectations, and reporting requirements shape how cases move, and our team brings that court-specific knowledge to every client.

The Chapter 11 Process: What to Expect

We start with a detailed review of your current financial position to identify your strongest path forward. Understanding the relationship between your assets, liabilities, and obligations lets us build a strategy aligned with your goals and suited to the Central District’s procedures.

Filing, the Automatic Stay, & Debtor-in-Possession Status

Once we’ve assessed your financial picture, we draft and submit a comprehensive reorganization plan to the court outlining how your debts will be managed over time. When you file, an automatic stay takes effect immediately, halting collections, lawsuits, and foreclosure actions while restructuring proceeds. During this period, you typically remain in control of your operations as a debtor-in-possession.

Court Representation & Creditor Meetings

We handle court appearances and attend the 341(a) Meeting of Creditors on your behalf, leveraging our familiarity with local judges and procedural expectations. When it’s time to present the reorganization plan, we advocate for a structure that is both feasible and sustainable. Our goal throughout is to keep the process moving efficiently and keep you focused on rebuilding rather than on courtroom procedure.

Ready to take the next step? Call (213) 344-0043 or use our online form to connect with an experienced Chapter 11 bankruptcy attorney today.

Subchapter V: A Streamlined Chapter 11 Path for Small Businesses in Encino

Not every Chapter 11 case follows the same track. Small business owners in Encino may qualify for Subchapter V, a faster and less expensive reorganization path created by the Small Business Reorganization Act of 2019 and effective since February 2020.

Eligibility Requirements

To qualify, a business must be engaged in commercial or business activity with at least 50% of total noncontingent liquidated debt arising from business activities. Aggregate noncontingent liquidated debt must not exceed $3,424,000. This is the current inflation-adjusted cap, effective April 1, 2025. Single-asset real estate debtors are excluded. Businesses whose debt exceeds this threshold may need to proceed under standard Chapter 11 instead.

How Subchapter V Differs from Standard Chapter 11

Subchapter V removes several procedural layers that make standard Chapter 11 expensive and time-consuming for smaller businesses:

• No creditor committee: The U.S. Trustee-appointed creditor committee that adds cost and complexity to standard cases is eliminated.
• No disclosure statement required: The filing and confirmation process is simplified, reducing administrative burden.
• Debtor-only plan filing: Only the debtor may file a reorganization plan, which must generally be submitted within 90 days of the petition date.
• Creditor consent not required for equity retention: A debtor can propose a plan that impairs creditors without obtaining their consent, and shareholders can retain equity without providing new value.
• Repayment period: The plan covers a three-to-five-year repayment period.
• Trustee assigned: A Subchapter V trustee is automatically appointed to assist with an expedited timeline but doesn’t take control of debtor assets.

If your business carries meaningful debt but hasn’t reached the $3,424,000 cap, Subchapter V may offer a significantly faster and less costly route than standard Chapter 11. Ask us whether your business qualifies.

Frequently Asked Questions

What Is Chapter 11 Bankruptcy?

Chapter 11 is a “reorganization” bankruptcy used primarily by businesses, corporations, partnerships, and sole proprietors, but also available to individuals whose debts exceed the limits of Chapter 13 bankruptcy. The goal is to restructure obligations so the debtor can continue operating while paying down debt over time. During this process, the debtor typically remains in control of day-to-day operations and is referred to as a debtor-in-possession.

How Does Chapter 11 Bankruptcy Work?

Cases filed by Encino residents and businesses go through the U.S. Bankruptcy Court for the Central District of California, with the U.S. Trustee for Region 16 conducting the 341(a) Meeting of Creditors. The debtor-in-possession files a reorganization plan subject to court approval, and California-specific local rules and judge practices govern how the case proceeds. Our familiarity with Central District procedures helps us anticipate procedural requirements and keep your case on track.

How Does Filing for Chapter 11 Protect My Business?

Filing triggers an automatic stay that immediately halts collections, lawsuits, and repossession actions. That breathing room lets you plan strategically without creditor pressure bearing down on daily operations. Chapter 11 also opens the door to renegotiating leases, supplier contracts, and other agreements on more favorable terms. This is often an important factor in stabilizing a business. We negotiate on your behalf throughout this process.

What Are the Risks of Chapter 11 Bankruptcy?

Chapter 11 can involve prolonged proceedings, high administrative costs, and difficult creditor negotiations. If the court doesn’t approve the reorganization plan, conversion to Chapter 7 liquidation is a real possibility. At RHM LAW LLP, we manage these risks through proactive case management: timely filings, strategic negotiations, and clear communication at every stage so you’re not caught off guard.

Can Individuals File for Chapter 11 Bankruptcy?

Yes. Individuals whose debt exceeds Chapter 13 limits can use Chapter 11 to reorganize personal finances, including real estate holdings and unsecured debt. The process mirrors a business filing: the debtor proposes a reorganization plan under court supervision and works toward a manageable repayment structure. We tailor our approach to help protect your assets while addressing your obligations.

What Is Subchapter V, & Does My Small Business Qualify?

Subchapter V is a streamlined Chapter 11 path for businesses with aggregate noncontingent liquidated debts under $3,424,000 that are engaged in commercial or business activity. It’s faster and less expensive than standard Chapter 11: no creditor committee, no disclosure statement, and only the debtor may file a plan. The plan must generally be submitted within 90 days of the petition date. Contact our office to find out whether your business meets the current eligibility requirements.

Take the First Step Toward Financial Stability

If your business or personal finances have reached a breaking point, Chapter 11 may offer the restructuring path you need. At RHM LAW LLP, we’ve guided Encino clients through more than 7,500 bankruptcy cases over 20 years, and we bring that depth of experience to every consultation. We offer same-day and video appointments, consult in English, Spanish, and Farsi, and make it straightforward to get started.

Call (213) 344-0043 or reach out online to schedule your risk-free consultation. Our Chapter 11 bankruptcy attorneys are ready to help you move forward.