It takes money to make money is a popular phrase in the business world, but when the second half of that saying is not coming true when it needs to happen, it might be time to think about debt relief options. Bankruptcy might be the answer you are looking for.
The Truth About Los Angeles Bankruptcy
There are a lot of misconceptions about bankruptcy, the most important being that it is a death sentence for your business. Quite the contrary, when you file Chapter 11 or Chapter 7 bankruptcy, it might be just the thing your business needs to settle certain outstanding debts and finally turn a financial corner.
Determining the right type of debt relief for your business requires the skill and direction of an experienced attorney. Some of the factors to consider include things like what you want the future of your company to be and the nature and extent of your debts.
Here’s a quick look at the two types of bankruptcy available to a business and their key differences:
Chapter 7 Business Bankruptcy: Under Chapter 7, a business liquidates assets to pay outstanding bills and ultimately close the business. In some cases, an unsuccessful chapter 11 reorganization will turn into a chapter 7 liquidation. The most promising aspect of a chapter 7 bankruptcy is the end, i.e., when all the assets are liquidated and no more debts are owed. Many business owners that file for chapter 7 bankruptcy have the true fresh start they need to go on and start a successful business.
Chapter 11 Business Bankruptcy: Commonly referred to as “reorganization bankruptcy,” chapter 11 is a popular debt relief option that allows you to regain control of your finances and settle with your creditors while still operating your business. Filing and completing a chapter 11 bankruptcy involves a detail-oriented approach to compiling your pre-bankruptcy financial affairs as well as a dedication to making your business profitable and attention to the restructuring agreement and repayment plan.
Not surprisingly, business bankruptcies are incredibly complex areas of law. If worrying about your debts is getting in the way of running your business, give DCDM Law Group a call today to discuss your options. We have been helping businesses in your very situation for over a decade; we can work together to come to a solution that works for you and your business. Your first consultation with us is always free.
DCDM Law Group
DCDM Law Group is dedicated to coming up with the financial solution for your business. Come into your first consultation with all of your questions and concerns and let our experience — more than 12 years’ worth — guide you throughout the process. In addition to extensive experience with business bankruptcy filings, our firm founder has a background in business coaching, meaning you will not only benefit from our legal knowledge but also our business acumen. Give us a call today and let’s begin working toward a solution that’s right for you.