It’s important to understand what your options are, both bankruptcy and non-bankruptcy related:

Bankruptcy and Non-Bankruptcy OptionsBankruptcy Options, Santa Cruz CA

Chapter 7

Chapter 7 bankruptcy, often referred to as “straight” bankruptcy, is available to both corporations and individuals, subject to certain eligibility requirements in individual cases.  In a Chapter 7 case, a Trustee is appointed by the Court to oversee the administration of the case.  Debtors are required to attend a 341 meeting with counsel, if an attorney has been retained, and, barring objection, individual debtors will receive a Discharge at case conclusion, which is often within three to four months in an individual case.  As each case has different facts, it is important to talk to your attorney about your situation if you are contemplating a Chapter 7 case for yourself or your business.

Chapter 11

Chapter 11 is a reorganization provision of the Bankruptcy Code utilized by corporations and individuals to restructure their businesses under bankruptcy protection.  Chapter 11 cases are almost always costly and often complex, requiring a careful analysis of the debt structure of the company and the options for restructuring under a Plan of Reorganization.

If you are contemplating a Chapter 11 case for yourself or your business, it is essential that you carefully review the advantages and disadvantages of the process with both an attorney and your accountant as a Chapter 11 filing is not to be undertaken lightly.  While Chapter 11 reorganization is generally lengthy and expensive, the advantage provided by a successfully confirmed Chapter 11 case often result in a company which is still operational with its debt restructured.

Non –Bankruptcy Options

Bankruptcy is often not the only alternative to be considered if you face financial difficulties and it is useful to review non-bankruptcy options, such as voluntary workouts, prior to moving forward with a bankruptcy case. While most often utilized in business cases, non-bankruptcy options for individuals also exist and should be discussed with your bankruptcy professional and accountant.   Non-bankruptcy options tend to be most effective in those cases where the financial difficulties have not reached a “breaking point” with creditors, so it is wise to review these options with counsel sooner rather than later in order to maximize the options which might available for planning.

If you are having financial difficulty individually or with a business, please contact our office for an initial consultation to discuss both bankruptcy and non-bankruptcy options.


The Law Office of Henry B. Niles III is a debt relief agency. We help people file for relief under the Bankruptcy Code.

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Hank has been in practice since 1979 and has handled bankruptcy matters since the early 1980’s, assisting both business and individual clients with debt solutions.

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365-B Lake Avenue
Santa Cruz, CA 95062