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Is Business Bankruptcy Right for Your Business?

business bankruptcySeeking the protection of bankruptcy for your business can be a complicated issue and a difficult choice depending on many variables such as the  scope of your assets, the amount of debt you are carrying, your cash flow and future prospects. An attorney with expertise in business bankruptcy is someone who will be able to help you understand the issues at hand, evaluate your particular situation and provide you with competent legal advice. The Law Offices of Leslie Richards routinely handles business bankruptcy issues and can assist you in making the best decision for you and your business.

Which Chapter of Bankruptcy to File?

Only separate legal entities can file for bankruptcy in their own right without involving the personal credit of the owner or owners–and that means corporations, limited liability companies and partnerships are eligible to do so. Chapter 7 and Chapter 11 are both options for these entities, but a sole proprietorship is essentially an extension of the owner and it is not able to file for bankruptcy separately from the company owner(s).

Chapter 7

The aim of a Chapter 7 bankruptcy for businesses generally is to stop creditor attacks and to organize the distribution of assets–if there are any–to pay off business debts. There is no subsequent discharge for a business Chapter 7 as there is for an individual, but a corporate entity can still receive great benefit from Chapter 7 protection.

Chapter 11

Filing for Chapter 11 bankruptcy is intended to protect the ongoing operations of the business while devising a repayment plan for creditors. Chapter 11 bankruptcy involves a substantial time requirement from the owners and managers of a company in order to comply with its requirements. In Chapter 11, interaction with legal counsel and negotiations with creditors can be very time consuming. This form of bankruptcy is also often expensive, requiring significant resources.

Chapter 13

Chapter 13 bankruptcies may only be filed by individuals and not corporations. Individuals who are self-employed individuals–whether they have a corporation or not–may find Chapter 13 bankruptcy worthwhile.

Chapter 13 bankruptcy is essentially a court-supervised plan for the repayment of creditors. The 13 debtor agrees to allocate the entirety of his or her disposable income to the Chapter 13 plan over the course of 5 years. If that amount of disposable income is not enough to repay his creditors, then the remaining balance due to them can be discharged at the end of the term.

The Business Bankruptcy Decision Is Yours to Make

The Law Offices of Leslie Richards, PC will take the time to understand your business and the issues you are facing. We’ll explain the different aspects and the implications of a business bankruptcy in a way that you can understand. Even though you may ask us to make a recommendation as to what type of bankruptcy is best and when, ultimately the decision will be yours. But you will have all the facts and details you need to make the best decision you can for you and your business.

Your California Business Bankruptcy Lawyers

Many businesses aren’t fully aware that business bankruptcy is an option to help them survive a challenging economic period and protect the business from aggressive creditors. At the Law Offices of Leslie Richards, we fully understand what you’re facing. It’s not our goal to wow you with our bankruptcy knowledge or legal expertise, we simply want to help you achieve your business goals. Our business bankruptcy attorneys will give you personalized attention and current legal advice. We’ll also create a great strategy for a positive outcome for you and your business at a reasonable cost. Please call us today for your complimentary confidential conversation with one of business bankruptcy attorneys at (818) 781-5000 or email us.

A phone call to Leslie Richards offices will help you determine if you need an attorney or not! Free Phone Consultation click here.

Senior Litigating Attorneyleslie richardsLeslie Richards,Esquire Senior Litigation Attorney

For than 30 years, the Law Offices of Leslie Richards, P.C. has been providing individuals and small-to-medium size business owners with experienced legal counsel.

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