As a business owner, it is extremely discouraging to be on the brink of financial ruin. After all of the hard work, time, money and resources you have invested in your business, this can’t be the end, can it? Fortunately, it doesn’t have to be. Countless L.A. business owners have been in your shoes and are now back on track with help from our Los Angeles business debt lawyer. Some debt problems are best resolved by filing for Chapter 11 bankruptcy protection while other situations are better served by debt settlement — two different processes. The point is that serious financial problems can be resolved when you make the right moves.
Financial hardship does not mean that your dreams of a successful business need to come to an end. Running a business in California is tough at the best of times, and when debt problems take over your time, other areas of your enterprise suffer. Let our team at DCDM Law Group help. We can help you to determine the right strategy for your situation: debt settlement or bankruptcy. The answers lie in your individual debt situation. Get us involved in resolving your financial problems — the amount you save could be significant.
Understanding Debt Settlement in Los Angeles
Debt settlement gives debtors the opportunity to make a lump sum payment, usually in exchange for a reduction in the amount owed. Let’s say you owe $15,000, and through negotiations with the creditor, your attorney arranges for you to pay only pennies on the dollar. Some other benefits of debt settlement can include:
- Delay or halt collection actions or lawsuits
- Protect your business and personal assets
- Quickly resolve financial troubles
Debt settlement is generally a viable option for business owners who have liquid assets or access to funds that can allow for a lump sum payment within a short period of time.
What Is Bankruptcy?
Bankruptcy is a legal protection afforded to individuals and business owners who, due to any number of unfortunate circumstances, have found themselves buried under debt and unable to keep up with existing financial obligations. Chapter 11 bankruptcy is sometimes referred to as “reorganization bankruptcy,” as it gives a business owner the necessary time to make internal changes, reorganize operations so as to keep the doors open, and keeps the creditors at bay. Chapter 11 bankruptcy includes a plan to get creditors repaid over time, without depleting existing cash resources. This can be a win-win for the business and its creditors, as a successfully executed Chapter 11 bankruptcy can help get a company back on its feet and on the road to success, while getting creditors paid off over time.
Some small business owners may want to consider Chapter 11 bankruptcy rather than debt settlement if:
- The business does not have enough in liquid assets, and no way to gain access to cash for lump sum settlements;
- An owner needs immediate legal protection from creditor harassment;
- There is a need to halt legal action from creditors;
- There is a need to defer temporarily certain payments while restructure and reorganization occurs;
- It is necessary to restructure existing debt so it can be paid back over time;
- It is critical that the business is not subjected to liens, bank levies, repossession, foreclosure and other legal actions.
Determining If Debt Settlement in Los Angeles Is Right For You and Your Business
Making the decision to seek debt settlement in Los Angeles or file for bankruptcy is not always easy, but in fact, could save your business. Make the wrong decision and your business may be forced to fold. Make the right decision, and you could quickly get your enterprise back on the road to success.
If you need assistance in finding out what is right for you and your business, an attorney from the DCDM Law Group, PC is here to help. Our firm is committed to helping business owners come up with effective debt settlement solutions. Contact us today to get the help you need to save your business.