Business Bankruptcy - How to Make an Informed Decision

The economic climate in the U.S. and abroad is shifting more than ever, resulting in an array of challenges to operating a profitable business.  Consideration of a Chapter 11 business bankruptcy filing is not an easy decision to make, but one that an increasing number of business owners are faced with.  Maybe your business needs just a bit of monetary breathing room during these difficult economic times versus a more serious shutdown.  Alternatives include a Chapter 11 business bankruptcy filing that can assist you in rehabilitating a faltering business. The Chapter 11 business bankruptcy code was designed to give businesses an opportunity to reflect on their current financial situation, develop a plan of reorganization, and emerge from bankruptcy protection in a more financially viable state.

Whether to file business bankruptcy is a serious decision that requires a thorough understanding of the effects on a business entity. If you are considering a bankruptcy for your business, a Chapter 11 filing may give you the necessary financial flexibility to move ahead. The types of business entities that may file a Chapter 11 bankruptcy case are:

• Corporations
• Partnerships
• Sole Proprietorships

There are many nuances within the bankruptcy laws, particularly the laws that relate to businesses. To make the right decision for your business situation, it pays to seek the advice of an experienced Los Angeles business bankruptcy lawyer.

Advantages to Filing Chapter 11

A Chapter 11 business bankruptcy provides for negotiation and an agreement with creditors to allow the company to continue operating. Day-to-day operations go on, but under the auspices of a bankruptcy court judge who oversees critical corporate decisions. Other advantages to a Chapter 11 business bankruptcy filing include:

• Stops harassing creditors
• Allows for the development of a business reorganization plan
• Preserves jobs
• Suspends lawsuits or evictions
• Interrupts tax levies

By reorganizing the business, an opportunity for a profitable future exists.  A Chapter 11 bankruptcy filing buys you time and gives you room to implement plans to get the business back on track.  Restructuring your business may save the entire operation and should be considered before more drastic measures are taken.

Speak with a Qualified Los Angeles Business Bankruptcy Attorney

If your goal is to save your business, keep your employees working, and get a fresh start, consider speaking with a knowledgeable Los Angeles business bankruptcy attorney who can explain the Chapter 11 process. As with any significant business decision, there are pros and cons to be considered when contemplating a bankruptcy filing in Los Angeles or elsewhere. Let us help you decide the best course of action for your business.  Call us today for a free consultation at 310-584-7702 or 866-572-2423.