Handling Business Bankruptcy - Los Angeles Area
The current state of the economy, coupled with the shrinking availability of affordable credit has sent many businesses into a financial tailspin. Regardless of the size of your business, financial troubles can hit hard and unexpectedly. Falling behind on your financial obligations can lead to restricted credit availability, which in turn can make it all but impossible for you to continue running your business. Filing for Chapter 7 bankruptcy can eliminate business debts, and liquidate your business assets in an orderly fashion. Filing for Chapter 11 bankruptcy gives businesses which have had a temporary financial setback the chance to reorganize, pay down debt, and emerge as a viable, healthy company with a bright future. The choice as to what type of bankruptcy to file for your business will depend on several factors, and you should speak to one of our trained
Los Angeles County Bankruptcy Attorneys about your circumstances in order to find out which type of bankruptcy would benefit you most.
Chapter 11 Bankruptcy in Los Angeles County
Bankruptcy law recognizes that there are important differences between personal finances and business finances, and structures bankruptcies accordingly. You will be expected to provide complete financial information about the business, and to propose a repayment plan that is both reasonable and fair.
Chapter 11 bankruptcy repayment plans must cover the entirety of any priority and secured debts. Additionally, you will be expected to repay some of your unsecured debts, if at all possible. Because any creditor whose rights are affected negatively may have the right to vote on your repayment plan, you will want to be certain to put your best efforts into the financial planning of your repayment plan.
While you are in Chapter 11 bankruptcy, you will still be able to conduct business as usual. While you will be expected to make the payments to the bankruptcy trustee or to the creditors directly, you will still be able to make purchases and pay your employees as usual. Regardless as to whether you handle your own bankruptcy estate, or whether the estate is managed by a trustee, the bankruptcy process for businesses is typically longer than that for an individual. You will be expected to make payments as per the repayment plan while the reorganization is in process. For complicated Chapter 11 filings, this process can take several months, and may even take longer than a year to complete.
Ultimately, whether you decide to reorganize or liquidate your business, bankruptcy can provide much-needed protection when it comes to your financial freedom and your ability to own and/or operate another business in the future. If you do decide to reorganize your business through Chapter 11 bankruptcy, you will be helping your company become more financially fit, and you will be able to emerge from the bankruptcy leaner, more efficient, and more financially sound.
Business bankruptcy is complicated, and the effects of an improperly filed bankruptcy can be devastating. It's in your best interest to seek legal counsel for aLos Angeles County Chapter 11 bankruptcy, in much the same way you would seek legal advice for other important business matters. Our firm handles Chapter 11 bankruptcy in Los Angeles County on a regular basis, and we understand how to help you preserve your company's financial security and help you find peace of mind when dealing with creditors and business debt. Contact us today and arrange for a free initial case evaluation. We'll help you to understand the full benefits of a Chapter 11 bankruptcy filing, and give you suggestions that will help you to take full advantage of the financial protection that a Chapter 11 bankruptcy provides.