Found an issue on this page? Let us know and we will look into it as soon as possible.
My business and I are named defendants. If I file for Chapter 11 BK as an individual, will the case be stayed against business?
Anonymous4 views4 answers
I have an SBA Loan that is tied to 3 properties and my business. I am in default and the creditor is suing me, my spouse, and my company for breach and judicial foreclosure. If my spouse and I file a joint chapter 11 bankruptcy as individuals, will the automatic stay prevent the entire case from moving forward? Or can the plaintiff move forward with the case against my business regardless of the automatic stay? My initial thought is that since my company is an asset, the creditor should be prevented from pursuing litigation. Also, how long does a chapter 11 generally last? Any help is appreciated.
Sandra Maria NuttChapter 7 Bankruptcy AttorneyVan Nuys, CA ·
Meet with a competent Chapter 11 Attorney such as Dennis McGoldrick or John Hayes - this is NOT a simple one-off ask/answered issue. Best of Luck. Visit cdcbaa to find an attorney that can assist you.
David Lloyd MerrillChapter 11 Bankruptcy AttorneyWest Palm Beach, FL ·
No -- you and your spouse are protected by the automatic stay, but your company is not. There are, however, several potential options available to you. In our jurisdiction they are called "Celotex" injunctions, but they are called different things in different jurisdictions. But wherever you are, they are VERY hard to get, because what you are asking to do is extend the stay to include non-filing parties, and usually when it is done it is the opposite of what you would need, meaning that a company has filed and the injuntion is used to protect the principles of the business.
There is simply an incredibly remote possibility that you will be successful handling a Chapter 11 case successful unless you are someone who deadls with these regularly. Get a hold of someone locally right away to help protect you and your company. San Diego has plenty of competent Chapter 11 practitioners.
Eric Jerome GoldTrusts AttorneyCalabasas, CACA licensed ·
This is a great example of why you should not consider bankruptcy as a do-it-yourself project. The business is not a filing party to the bankruptcy, assuming it is some form of legal entity, thus it would not be included within the automatic stay. You should consult with a local bankruptcy attorney for assistance and a review of what you have already done.
