Los Angeles Attorneys – Business Bankruptcies

If you had no personal guarantees for your business debt, then a simple Chapter 7 business bankruptcy can inform all your creditors that the business is closed and there are no assets.

If the business has hard assets, the bankruptcy trustee—a neutral third party—can assist with the liquidation of the assets and facilitate payment to creditors.

If you personally guaranteed business debts like SBA loans, credit union loans, or credit cards, creditors can come after your personal assets. In this case, a personal Chapter 7 bankruptcy should be filed to protect your assets and eliminate all business debt.

In a general partnership, each partner is jointly and severally liable for debt. That means that creditors can pursue any and all partners to collect. Because you may be required to use your personal assets to satisfy the partnership’s debt, consulting with a business debt lawyer as soon as you are aware of the problem is critical. Reach out now for a FREE case evaluation.

While most people associate bankruptcies with debt and unprofitability, some businesses use it as a strategy to manage unfavorable situations, like wanting to reject or renegotiate burdensome contracts, or the desire to restructure the organization. With the nuances involved in these special circumstances, only knowledgeable attorneys can provide the best guidance.

Because financial hardships take a toll emotionally and physically, it’s tempting to simply close up shop. But this isn’t always the best decision, and you should explore your options with a business debt lawyer to avoid unnecessary repercussions and ensure the best outcome for your situation.