Business Bankruptcy Attorney In Encino, CA
If you’re looking for a small business bankruptcy attorney in Encino, Haber Law Firm, APC is the legal partner to call. We have years of expertise assisting our small and medium-sized business clients through their bankruptcy needs. Although the goal for many business owners is to avoid bankruptcy, if bankruptcy is the only viable option, we have the experience and resources needed to successfully navigate through the bankruptcy process. When difficulties arise, Haber Law Firm, APC is here to help you obtain the best possible financial outcome. Our attorneys have more than six decades of combined legal expertise and understand the law.
Is Bankruptcy The Right Choice For Your Business?
Is it the best option for your small business to declare bankruptcy? If the answer is yes, which bankruptcy Chapter should you file under? Which one does your business qualify for? These are difficult questions with important answers. But when you work with our Encino business bankruptcy attorney, we will do a comprehensive analysis of your situation and help you determine the best path forward.
During a consultation with our legal team, we will assist you in making the best decision, obtaining the proper documentation, and addressing even your most complicated questions regarding small business bankruptcy. We have represented many people, businesses, and other organizations throughout Los Angeles and California as they successfully emerge from bankruptcy. Regardless of the specifics of your situation, we can assist you because of our experience and resources. The bankruptcy chapters accessible to a small business are dependent on whether it is incorporated as a legal entity:
A Sole Proprietorship
The owner and the business are one and the same if it is a sole proprietorship. As a result, the owner is personally responsible for all of the company’s debts. If there isn’t enough money to pay all of the obligations, creditors can seize the owner’s personal assets. Filing for bankruptcy as a sole proprietorship entails submitting oneself individually in Chapter 7 cases.
Partnerships are two or more people who are considered co-owners of a corporation and who form an association. Unless they’re a limited liability partnership, partners are responsible for all partnership obligations jointly and severally unless they act as individuals. If a business wants to continue operating but reorganized its debts, it can file Chapter 11; if it wants to stop operating and have assets sold off, it can file Chapter 7.
Corporations & Limited Liability Corporations (LLCs)
In most situations, the personal assets of shareholders are generally protected from creditors. An owner’s personal possessions are likewise typically protected from business creditors in an LLC. Companies and LLCs can choose between Chapter 11 or Chapter 7 as their bankruptcy procedure.
Types Of Bankruptcy For Businesses In California
Filing for bankruptcy does not necessarily signify the end of your company. For many entrepreneurs, bankruptcy is a fresh start that cures debilitating financial issues. If you’ve run up insurmountable debt trying to keep your business afloat, bankruptcy may provide the relief you need and deserve. Below are the different types of bankruptcies your business may utilize:
Chapter 7 Bankruptcy
The business must cease operations and liquidate all assets. All assets not covered by a lien are collected and sold by a trustee. The creditors are reimbursed using the money earned. When a company has no future, has no significant property, or owes so much money that restructuring is impossible, it may be the best option to shut it down.
Chapter 11 Bankruptcy
Under Chapter 11, small business bankruptcy, reorganization and restructuring debt, and renegotiating leases and contracts are options. The company continues to operate under a re-organization. A Chapter 11 reorganization takes a lot of time on the part of the company’s owners. On a regular basis, comprehensive financial disclosure to the court and creditors is required.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy, sometimes known as a “wage earners” bankruptcy, is a method for individuals with a consistent income to restructure their finances. In Chapter 13 bankruptcy, you’ll negotiate with your creditors and the Bankruptcy Trustee on a payment schedule of three to five years. Your remaining unsecured obligations will be canceled at the conclusion of the plan. Most filers pay less than one penny on the dollar for their unsecured debts.
In Chapter 13 bankruptcy, both secured and unsecured debts are addressed. You have the option of continuing to make payments on your secured obligations such as mortgages and automobile loans or surrendering the property. Unpaid amounts of your unsecured debts, such as credit card and medical expenses, will be erased at the conclusion of your plan.
Relief Options For Small Business Owners
In 2020, Chapter 11 was updated with the addition of Subchapter V. Because small companies haven’t previously benefited from Chapter 11 in the same way as big businesses have, this method is only available to them. Subchapter V offers a streamlined and cost-effective approach to debt restructuring, allowing small company owners to regain control of their finances and establish solid foundations for their business’s future. You may be able to do the following things through Subchapter V:
- Create your own repayment plan
- Get plan approval without a vote from creditors
- Cram-down certain types of debt
- Modify the mortgage of your principal residence (if used in connection with your business)
The advantages of Chapter 11 for small company owners are significant, but the conditions are tight. To discover whether you qualify for this sort of assistance, contact our business bankruptcy attorney in Los Angeles.
Contact Our Encino Business Bankruptcy Attorney Today
At Haber Law Firm, APC we can handle all your business’ bankruptcy needs, regardless of the complexity of your situation. We realize how crucial these issues are to you and your company, which is why our Encino business bankruptcy attorney will work tirelessly to assist you in attaining your objectives. Trust us to defend your rights, advance your best interests, and advise you every step of the way.
This website contains attorney advertising. The information provided herein should not be relied upon as legal advice. Every legal matter is unique and you should always seek the advice of a retained attorney to answer your legal inquiries. Haber Law Firm, APC, will not represent you unless an attorney-client relationship is formally created in writing.