At the Orantes Law Firm, in Los Angeles, attorney Giovanni Orantes is dedicated to helping small-business owners throughout Southern California obtain protection from creditors and relief from debts by filing bankruptcy. We offer a free initial consultation to look at the challenges your business faces and give you honest answers about your rights and options.
As a small-business owner, your bankruptcy options may include Chapter 7, Chapter 13 and Chapter 11.
Chapter 7 Bankruptcy for Small Businesses
Chapter 7 bankruptcy may be an option if your business is not continuing. While business entities cannot obtain a discharge of debt by filing Chapter 7, sole proprietors can. Even if you are not a sole proprietor, filing Chapter 7 bankruptcy may persuade less sophisticated creditors to stop harassing you.
The biggest issue in a Chapter 7 filing is knowing whether you should do it. You may be putting an adversary in charge, since the Chapter 7 trustee will be paid according to how much money he or she can recover for your creditors and the owner of the business is the first that may be targeted.
Chapter 13 Bankruptcy for Small Businesses
If you are a sole proprietor (or you dissolve your business entity so you are a sole proprietor), Chapter 13 bankruptcy may be an option for you. Depending on your amount of secured and unsecured debt, Chapter 13 bankruptcy allows you to protect assets while obtaining debt relief.
Chapter 11 Bankruptcy for Small Businesses
Debts can drown your business if creditors demand immediate payment. Chapter 11 bankruptcy can give you the time and protection you need to reorganize your business and turn your financial situation around.
The key issue in a Chapter 11 bankruptcy is whether your business is viable. If it is, then Chapter 11 bankruptcy can help you save it. Chapter 11 bankruptcy is less complicated and less expensive for a small business than a large business, since a small business may have dozens of creditors rather than thousands. You will continue to be in charge of your business as a debtor in possession.
Contact Los Angeles Small Business Bankruptcy Lawyer Giovanni Orantes
For more information about restructuring your small business debt, call 213-640-2619 or contact us by e-mail to schedule a free initial consultation. Se habla español.