Starting a business is one of the most exciting economic activities, and for many people it represents the independence of self-employment and the possibility of unlimited financial returns. However, if the business fails, there are legal processes which need to be followed in addressing its debts, and bankruptcy attorneys in Los Angeles County can assist.
Californian law provides certain options to the owners of companies which are no longer financially sustainable. If this has happened to your business, you should consult with liquidation attorneys in order to determine the most suitable course of action.
There is the Chapter 7 procedure (liquidation), which applies in cases where the bankrupt party is genuinely able to show the court that payment of their debts is impossible in the next 3-5 years. These debts then become invalid. This order is not allowed, however, pertaining to alimony, child support, study loans and some types of tax. It can also only be instituted once every 8 years.
If payment is indeed possible in the next 3-5 years, the indebted party may seek Chapter 13. According to this order, the debtor is obliged to pay their debts, either partially or entirely, according to their ability to do so. It is sometimes used where the debtor is trying to keep certain assets, such as their home.
Sometimes a business suffers financially but keeps its doors open. It then has the option of Chapter 11. This order lets the business stay open, on condition that its creditors have approved a repayment schedule. Chapter 11 proceedings are thus only available to companies or traders who are still able (or still desire) to do business and make money.
Bankruptcy is not a pleasant outcome. It usually involves the loss of money or other assets. However, managing the process can be much easier with the right legal advice.
Californian law provides certain options to the owners of companies which are no longer financially sustainable. If this has happened to your business, you should consult with liquidation attorneys in order to determine the most suitable course of action.
There is the Chapter 7 procedure (liquidation), which applies in cases where the bankrupt party is genuinely able to show the court that payment of their debts is impossible in the next 3-5 years. These debts then become invalid. This order is not allowed, however, pertaining to alimony, child support, study loans and some types of tax. It can also only be instituted once every 8 years.
If payment is indeed possible in the next 3-5 years, the indebted party may seek Chapter 13. According to this order, the debtor is obliged to pay their debts, either partially or entirely, according to their ability to do so. It is sometimes used where the debtor is trying to keep certain assets, such as their home.
Sometimes a business suffers financially but keeps its doors open. It then has the option of Chapter 11. This order lets the business stay open, on condition that its creditors have approved a repayment schedule. Chapter 11 proceedings are thus only available to companies or traders who are still able (or still desire) to do business and make money.
Bankruptcy is not a pleasant outcome. It usually involves the loss of money or other assets. However, managing the process can be much easier with the right legal advice.
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Find a review of the advantages you get when you work with bankruptcy attorneys in Los Angeles County and more information about an experienced lawyer at http://www.goldbachlaw.com/ now.
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