Experienced Attorneys in LA are on your Side
If you are seeking Los Angeles small business bankruptcy lawyers, Weintraub, Selth & Nguyen, APC may be the legal allies you need. We have decades of experience helping our small business clients avoid bankruptcy. If bankruptcy is the best alternative, however, we are highly experienced business bankruptcy lawyers who have guided countless clients through the complex process of small business bankruptcy.
If you own a small business that is overburdened with debt, our experienced Los Angeles small business bankruptcy lawyers can help.
Contact us online or call us for a free consultation at 866-992-7272 as soon as possible. Our Los Angeles small business bankruptcy lawyers can guide you through the challenges you are facing. We are extremely effective in helping small businesses achieve the best possible financial outcome when problems arise, and our attorneys have more than six decades of combined legal experience. We know the law and we know how to help you pursue your best interests.
Is Bankruptcy the Right Choice for your Small Business? Which Chapter?
Is bankruptcy the right choice for your small business? Which Chapter should you file under? Which does your business qualify for? These are complex questions that have great significance for how you should proceed. When you reach out to our small business bankruptcy lawyers, we will provide a comprehensive analysis of your circumstance. In a free consultation with our attorneys, we will help you make the right decision, obtain the proper documentation and answer even your most complex questions about small business bankruptcy. We have represented countless individuals, corporations, and small businesses as they successfully emerge from bankruptcy throughout Los Angeles and all of Southern California. Regardless of the details involved in your case, we have the experience and resources to assist you.
In general, the bankruptcy Chapters available to a small business depend upon what kind of legal entity it is:
- A Sole Proprietorship: If the business is a sole proprietorship then the owner and the business are one in the same. This means that the owner is personally responsible for all of the business debts. Creditors may be able to take the owner’s personal assets if there is not enough money to pay the debts. If a sole proprietorship files for bankruptcy, then the owner is filing for themselves personally as well. This typically involves Chapter 7 bankruptcy.
- A Partnership: This involves two or more persons associating as co-owners of a business. Partners are jointly and severally liable for all partnership obligations unless it is a limited liability partnership, which shields each party from individual liability for the acts of the other partners. A partnership can either file a Chapter 11 if it wants to remain in business and reorganize debts, or a Chapter 7 if it intends to stop operating and have assets liquidated.
- Corporations and Limited Liability Corporations (LLC): In this case, shareholder’s personal assets are usually protected from creditors. In the case of a LLC, an owner’s personal assets are also usually protected from business creditors. Corporations and LLCs can file under Chapter 11 or Chapter 7.
The following bankruptcy Chapters are available to small businesses, depending upon what type of legal entity they are:
- Chapter 7: The company must stop operations and all assets are liquidated. A trustee collects and sells all assets not secured by a lien. Proceeds are paid to the creditors. This may be the best choice when the business has no future, there are no substantial assets, or the debts are so overwhelming that restructuring is not feasible.
- Chapter 11: Under a Chapter 11 small business bankruptcy, reorganizing, restructuring debt and renegotiating leases and contracts is available. Under a reorganization, the business continues to operate. A reorganization under Chapter 11 requires a significant amount of time commitment on the part of the business owners. Complete financial disclosure to the court and creditors is required on a regular basis.
- Chapter 13: A Chapter 13 bankruptcy is also a debt reorganization plan but is only available to sole proprietorships that have debts within certain limits.
You may be facing a tremendous amount of anxiety and have substantial concerns about what the future holds. We understand. If you are struggling and in heavy debt, we will advise you of your options. Our attorneys can guide you through this complex area of law and provide you with the best options.