It’s an all too common scenario: a restaurant or other business expands too quickly, finding itself under burdensome lease agreements for locations it no longer can afford. If your business is having problems with leases, Chapter 11 bankruptcy may provide a solution.
At the Orantes Law Firm in Los Angeles, our attorneys are dedicated to helping business owners throughout Southern California obtain relief from leases and other contractual obligations. We offer a free initial consultation to look at the debt problems you face and give you honest answers about your rights and options.
Discharging Leases in Chapter 11 Bankruptcy
When you file Chapter 11 bankruptcy, you may, at your option, reject, assume, or assign most types of leases and business contracts. You can do so without the consent of the other party. In addition to allowing you to discharge leases and other contractual agreements, filing Chapter 11 bankruptcy will put an immediate halt to collections, lawsuits, harassment, and other adverse creditor actions.
You can also use a Chapter 11 bankruptcy filing to renegotiate contracts and leases. The creditor has a strong incentive to work with you since you have the option of discharging the agreement if you are unable to negotiate terms that you can live with. Because the rules of discharging and renegotiating leases and business contracts are complex, it’s important to consult an experienced Chapter 11 lawyer before you file bankruptcy.
Contact Our Los Angeles Chapter 11 Bankruptcy Attorneys
For more information about discharging leases in Chapter 11 bankruptcy, call (213) 340-0534 or contact us by e-mail to schedule a free initial consultation. Se habla español.