Best Restructuring & Insolvency Lawyers in Burbank

About Restructuring & Insolvency Law in Burbank, United States

Restructuring and insolvency law covers debt relief, business reorganizations, and creditor rights for individuals and companies in Burbank. The field helps entities survive financial distress while addressing creditor claims under court supervision or out-of-court workouts. Core tools include bankruptcy filings, insolvency statutes, and negotiated plans that govern repayment terms.

In Burbank, the local economy features media, entertainment, technology, and retail sectors, all of which can encounter cash flow shocks. Federal bankruptcy remedies typically govern most restructurings, with California law shaping related issues such as avoidance of transfers and fiduciary duties. Residents and businesses in Burbank usually engage counsel skilled in both federal bankruptcy practice and California insolvency law. For an overview of bankruptcy basics, see U.S. Courts' Bankruptcy Basics pages.

Filing decisions and strategy are often influenced by where you live and work. In Burbank, cases are filed in the U.S. Bankruptcy Court for the Central District of California, and local rules may affect timelines and procedures. The Central District provides guidance on filing locations, forms, and court rules via its official site. Central District of California Bankruptcy Court and U.S. Courts - Bankruptcy Basics are reliable starting points for legal framework and process.

Why You May Need a Lawyer

Restructuring and insolvency matters in Burbank commonly involve complex interplay between federal bankruptcy law and California statutes. A lawyer can help you evaluate options, preserve assets, and negotiate with creditors.

• You're a Burbank business facing a cash crunch and potential creditor action. A Chapter 11 reorganization under the Small Business Reorganization Act can help you continue operations while creating a plan to repay debts. A lawyer can tailor a plan that fits your revenue cycle and creditor expectations.
• You suspect a transfer was made to evade creditors. California's Uniform Voidable Transactions Act (UVTA) can be invoked to challenge transfers made while insolvent. Counsel can analyze timing, consideration, and outcomes of such transfers.
• A lender is threatening foreclosure on commercial property in Burbank. A bankruptcy or workout strategy may halt foreclosures and provide breathing room to negotiate terms or pursue a sale under court oversight.
• An individual debtor faces wage garnishment or imminent collection actions. Chapter 7 liquidation or Chapter 13 repayment plans may discharge or reorganize debt while protecting essential income and assets.
• Your company is considering an out-of-court workout but needs a formal plan. A restructuring attorney can draft a plan that aligns with creditor demands and avoids future disputes.
• You anticipate cross-border or multi-jurisdictional debt issues. An insolvency lawyer can coordinate claims, asset transfers, and enforcement across jurisdictions to maximize leverage.

Local Laws Overview

Restructuring and insolvency in Burbank operate under federal bankruptcy law with California state supplemental rules. The most relevant laws and recent changes include:

• Small Business Reorganization Act of 2019 (SBRA) - This federal act enhances Chapter 11 for small businesses by simplifying and expediting reorganization processes. It took effect on February 19, 2020, and provides a streamlined pathway for qualifying small enterprises to reorganize with less administrative burden. See the U.S. Congress and judiciary resources for SBRA details. Congress.gov - SBRA and U.S. Courts - Chapter 11 Basics.
• 11 U.S.C. Chapter 11 (Reorganization) - The primary federal mechanism for restructuring business debts while continuing operations. Central District of California practice and procedures apply to filers in Burbank, with plan confirmation and creditor negotiations under federal rules. For an overview, see U.S. Courts - Bankruptcy Basics and the Central District guidance Central District of California - Court.
• California Uniform Voidable Transactions Act (UVTA) - California law governing fraudulent transfers and avoidable actions against transfers made while insolvent. It helps creditors and debtors assess transaction validity under state law. See California Legislative Information for UVTA references and codification in Civil Code sections related to voidable transfers. California Legislative Information.

In Burbank, practical application often involves the U.S. Bankruptcy Court for the Central District of California and local court rules. The Central District’s website provides specific local forms, deadlines, and contact information for filings and 341 meetings. Central District of California Bankruptcy Court is the authoritative local resource.

Frequently Asked Questions

What is Chapter 11 bankruptcy and when should I consider it?

Chapter 11 allows a business or certain individuals to reorganize debts while continuing operations. It provides creditor protection and a plan to repay or restructure obligations. In Burbank, cases are typically heard in the Central District of California, where a debtor can negotiate a plan with creditors.

How does the SBRA affect small business reorganizations in California?

SBRA creates a streamlined Chapter 11 for small businesses with simplified forms and faster timelines. It reduces some costs and procedural burdens, while preserving the ability to propose a comprehensive restructuring plan. California filers benefit from nationwide application of SBRA rules.

Do I need a lawyer for bankruptcy in Burbank?

Yes. Insolvency matters involve complex procedural requirements and creditor negotiations. A California attorney specialized in restructuring can protect your rights, manage filings, and coordinate with the court and creditors. A qualified attorney can also help avoid costly missteps.

How long does a typical Chapter 11 case take in the Central District of California?

Average Chapter 11 cases can take six months to two years, depending on case complexity and plan confirmation. Small business cases under SBRA are often faster but still require careful creditor negotiations and court oversight. Timelines can vary with court calendars and contested matters.

What is the Uniform Voidable Transactions Act and how does it matter to me?

UVTA addresses transactions made when a debtor is insolvent and may render transfers avoidable. It helps determine whether a sale, loan, or other transfer should be unwound to satisfy creditors. California courts apply UVTA to evaluate the legitimacy of prior transfers.

Can I file for bankruptcy if I am behind on taxes?

Tax debt can be dischargeable or subject to certain exceptions in bankruptcy. The treatment depends on the type of tax, timing, and compliance history. A bankruptcy attorney can analyze whether tax obligations can be discharged or restructured under Chapter 7, 11, or 13.

How much does hiring a restructuring lawyer cost in Burbank?

Costs vary by case complexity and attorney experience. Typical bankruptcy or restructuring engagements may involve retainer fees, hourly rates, and potential success-based components. Request a written engagement letter outlining fees and anticipated milestones before starting.

Do I qualify for Chapter 7 as an individual in California?

Qualifying depends on income, assets, and exemptions under federal bankruptcy rules and California exemptions. Most individuals with limited disposable income may file Chapter 7, subject to means testing and asset considerations. An attorney can assess eligibility and options.

What’s the difference between an out-of-court workout and formal bankruptcy?

Out-of-court workouts are private debt restructurings negotiated with creditors and do not involve the court. Bankruptcy provides formal protections, broad creditor relief, and structured plans. A lawyer can help determine which path minimizes risk and maximizes value.

How should I choose a restructuring and insolvency attorney in Burbank?

Look for a California attorney with experience in business reorganizations, familiarity with the Central District of California, and a transparent fee structure. Schedule consultations to compare strategies, timelines, and anticipated costs. Verify licensure and disciplinary history with the State Bar of California.

Can a lender force a bankruptcy filing in California?

Creditors cannot compel a debtor to file by themselves; the debtor must initiate the process. Creditors may push for relief from the automatic stay or propose a plan, but filing remains the debtor's decision. Counsel can assess leverage and timing for potential filing.

Is a federal bankruptcy court the right venue for my corporate reorganization?

For most corporate restructurings, a federal bankruptcy court under Chapter 11 is appropriate. State courts handle related issues like receiverships and some collections actions, but major reorganizations occur in federal court. In Burbank, filings typically proceed in the Central District of California.

Additional Resources

• U.S. Courts - Bankruptcy Basics - Official guide to bankruptcy concepts, including Chapter 7, Chapter 11, and Chapter 13. https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics
• Central District of California - Court Website - Local forms, filing procedures, and court contact information for bankruptcy matters in the Los Angeles area and beyond. https://www.cacb.uscourts.gov/
• California Legislative Information - Uniform Voidable Transactions Act (UVTA) - State law governing fraudulent transfers and voidable transactions under Civil Code. https://leginfo.legislature.ca.gov/

Next Steps

1. Assess your situation and determine whether restructuring, liquidation, or a hybrid approach is appropriate for your Burbank business or personal finances. Gather financial statements, creditor lists, and asset schedules to begin the evaluation.
2. Identify a qualified restructuring or insolvency attorney in the Los Angeles area who handles Central District of California matters. Use the State Bar of California directory to verify licensure and disciplinary status.
3. Consult at least 2-3 lawyers to compare strategies, timelines, and fee structures. Bring all relevant documents to the initial meeting and prepare a list of questions about potential outcomes.
4. Consider the SBRA pathway if your business qualifies and you need a streamlined Chapter 11 option. Discuss plan development, creditor negotiations, and potential timeline with your counsel.
5. Ask about fee arrangements, projected total costs, and billable hour estimates. Obtain a written engagement letter outlining scope, fees, and milestones before starting work.
6. Prepare for filing by organizing tax returns, contracts, leases, and loan documents. Your attorney will help assemble schedules, a disclosure statement, and a proposed plan if Chapter 11 is pursued.
7. Finalize the strategy with your attorney, file the case (if chosen), and participate in the required hearings and 341 meeting with creditors. Monitor the process through the court docket and respond promptly to requests from the judge or creditors.