Operating one's own business venture is an enthralling professional occupation, with the legendary benefits of being your own boss and the fabled limitless earning potential. But when businesses fall apart, the correct legal avenue needs to be selected in solving the issue of unpaid debts, and bankruptcy attorneys in Los Angeles County can help.
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.
Should the indebted party, in fact, be able to meet their liabilities in the following three to five years, they can still pursue Chapter 13. This option brings about the obligation to partly or entirely pay the debts in line with what the debtor has the ability to afford. It may be sought if the bankrupt entity is attempting to hold onto their most important assets, such as their residential premises.
If the business is able to continue profitable operations, they may opt for Chapter 11. This order permits continued operation, as long as the creditors of the business have accepted a repayment plan. The Chapter 11 option is therefore only available to companies who are able to proceed with ordinary operations and have not shut down completely.
Bankruptcy is not a pleasant outcome. It usually involves the loss of money or other assets. However, managing the process can be much easier with the right legal advice.
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.
Should the indebted party, in fact, be able to meet their liabilities in the following three to five years, they can still pursue Chapter 13. This option brings about the obligation to partly or entirely pay the debts in line with what the debtor has the ability to afford. It may be sought if the bankrupt entity is attempting to hold onto their most important assets, such as their residential premises.
If the business is able to continue profitable operations, they may opt for Chapter 11. This order permits continued operation, as long as the creditors of the business have accepted a repayment plan. The Chapter 11 option is therefore only available to companies who are able to proceed with ordinary operations and have not shut down completely.
Bankruptcy is not a pleasant outcome. It usually involves the loss of money or other assets. However, managing the process can be much easier with the right legal advice.
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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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