Commercial / Business Debt Settlement
Don’t think of bankruptcy for your business as failure; think of it as a second chance. With the help of a California bankruptcy lawyer, your small business still has an opportunity to bounce back. Your California bankruptcy lawyer can help your small business erase or settle the majority of its debts, giving your business a clean slate and a chance to prove you can still compete in the marketplace.
Types of Bankruptcy Available to Small Businesses
Your California bankruptcy lawyer can advise you as to which type of bankruptcy is right for your business – Chapter 11, Chapter 13, or Chapter 7 bankruptcy.
Chapter 11 bankruptcy is available to corporations, LLCs, partnerships, and individual proprietorships. Chapter 11 allows your small business to reorganize itself. The court will allow you to continue to pay your employees and produce a return for any stockholders, while reducing or eliminating the debt you owe your creditors. A California bankruptcy attorney can tell you if Chapter 11 makes sense for your small business.
Does your business need to clear its debts and get a fresh start? California bankruptcy attorney, Michael Shemtoub can help you with that.
When the business is a sole proprietorship, the individual owner may file for Chapter 13 bankruptcy. In Chapter 13 bankruptcy, the court creates a repayment plan for your debts, and discharges other debts. You don’t have to repay most of your debts in full under Chapter 13, but taxes and any back child support do usually need to be paid in full. Ask an experienced California bankruptcy attorney or Chapter 13 bankruptcy lawyer if you should pursue Chapter 13.
Like Chapter 11, corporations, LLCs, partnerships, and sole proprietorships may file for Chapter 7 bankruptcy. However, check with your California bankruptcy lawyer before pursuing this option – some Chapter 7 bankruptcies end with lawsuits from creditors. Chapter 7 is a liquidation process. All your business’ assets will be sold for cash, and that cash will go first to legal fees, then to your creditors. With the help of an expert Chapter 7 bankruptcy attorney, you can determine if your business has a chance to recover after a Chapter 11 or Chapter 13 bankruptcy, or if you should completely liquidate your assets and start over.
If you live in Southern California, you can find an experienced California bankruptcy lawyer at the Wilshire Law Group. Serving the small businesses of Bakersfield, Fresno, San Jose, San Diego Riverside, Orange County, and Los Angeles, and in short, all California, the DeptFreeLawFirm has handled many business debt settlements and can definitely help your small business navigate the complex litigation involved with bankruptcy. You might be surprised to find out that, with the help of a California bankruptcy attorney, you may be able to keep your doors open and still operate your business. Bankruptcy isn’t always the end of the road for a business; a California bankruptcy lawyer can give your business a chance at a new beginning.