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.
The law in the state of California allows several possibilities to a business enterprise that is no longer economically functional. If this description applies to your company, you should speak to liquidation lawyers about the best way to handle your existing liabilities.
First of all, there is the Chapter 7 order. It is also referred to as liquidation. It entails the entire elimination of all debts and is available to those who are able to prove that they cannot repay their creditors in the next three to five years. This order cannot be sought if the debt pertains to alimony, study loans, child support or certain issues of taxation. It can only be granted to the same person every eight 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.
Chapter 11 is usually resorted to by companies. It allows them to continue operating, but only insofar as their creditors have accepted their strategy to meet existing liabilities. This option assumes that the indebted business is still capable of generating revenue and has a financial future, so where the company has failed entirely it is not applicable.
Bankruptcy represents the ultimate failure of a business. It almost always implies the loss of money and a sour investment. Even so, it can be made less traumatic by professional legal assistance.
The law in the state of California allows several possibilities to a business enterprise that is no longer economically functional. If this description applies to your company, you should speak to liquidation lawyers about the best way to handle your existing liabilities.
First of all, there is the Chapter 7 order. It is also referred to as liquidation. It entails the entire elimination of all debts and is available to those who are able to prove that they cannot repay their creditors in the next three to five years. This order cannot be sought if the debt pertains to alimony, study loans, child support or certain issues of taxation. It can only be granted to the same person every eight 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.
Chapter 11 is usually resorted to by companies. It allows them to continue operating, but only insofar as their creditors have accepted their strategy to meet existing liabilities. This option assumes that the indebted business is still capable of generating revenue and has a financial future, so where the company has failed entirely it is not applicable.
Bankruptcy represents the ultimate failure of a business. It almost always implies the loss of money and a sour investment. Even so, it can be made less traumatic by professional legal assistance.
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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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