What Does a Pasadena Business Bankruptcy Lawyer Do?
If your business is coping with financial struggles, a business bankruptcy lawyer may be able to help. A business bankruptcy lawyer can assist you in all steps of a bankruptcy filing, from understanding the implications on your business to helping you to determine what type of bankruptcy is best to guiding you through the entire bankruptcy process.
At DCDM Law Group, our business bankruptcy attorneys have extensive experience with all types of corporate and professional bankruptcies. We represent real estate investors, healthcare companies, construction companies and small and large business owners in Los Angeles business bankruptcy. We assist clients throughout the greater Los Angeles area so whether you are seeking a Pasadena bankruptcy lawyer or an attorney in Santa Monica, West Los Angeles or elsewhere in the greater LA Metropolitan area, we can provide top-notch legal representation for you.
How a Business Bankruptcy Lawyer Can Help
A business bankruptcy lawyer serves a number of important functions. For instance a Pasadena bankruptcy lawyer who specializes in business bankruptcy can assist you in determining whether bankruptcy is the best option and what impact a bankruptcy will have on your personal and business finances.
Alternatives to business bankruptcy such as debt settlement might exist if you have only a limited number of debts. In many cases, however, filing bankruptcy sooner rather than later is the best option to stop the financial trouble your business may be facing.
Impact of a Business Bankruptcy
When you declare business bankruptcy, however, the impact the bankruptcy filing will have is going to depend in large part on the organizational structure of your business. If you are a sole proprietor, a business bankruptcy is essentially a personal bankruptcy. When you seek debt relief for your business, you and your business will be treated as one-and-the same legal entities. This means your personal assets may become part of the bankruptcy estate and you may become personally responsible for repaying business debts. Your personal credit score will also be adversely affected.
If your business is a separate legal entity such as an LLC or a corporation, however, the bankruptcy is filed under the businesses name and does not affect your personal credit or personal funds and assets. This can create significant complications in-and-of-itself, however. For instance, if you have a real estate company that has only one substantial asset, then your bankruptcy may be classified as a single asset real estate bankruptcy (SARE) and special rules will apply regarding the automatic stay. Your Los Angeles business bankruptcy attorney will help you to understand the affect of this designation and whether it will apply to you.
Choosing a Bankruptcy Chapter
When you file a business bankruptcy, you will also need to choose what chapter to file under. There are three main choices for filing for bankruptcy protection:
- Chapter 7 bankruptcy is a total liquidation bankruptcy. Your business will have to cease operations and assets will be sold to generate funds to repay creditors. The remaining balance of any unpaid debts will be forgiven.
- Chapter 11 bankruptcy is a restructuring bankruptcy. It is the most complex and expensive of the bankruptcy options for businesses but it provides great flexibility for debtors who wish to continue operating their businesses but who need to restructure and reorganize those businesses in order to make them profitable.
- Chapter 13 bankruptcy is similar to a chapter 11 but is normally used for personal reorganization bankruptcy rather than business reorganization bankruptcy. Sole proprietors or those with small businesses may opt for a chapter 13 to reorganize their business rather than the more complex chapter 11.
The Pasadena business bankruptcy lawyers at DCDM Law Group will assist you in determining what chapter will be most advantageous to you. We can help you to get your business up and running again through every step of the reorganization process or can ease the transition to closing your business and resolving your debts once and for all. Contact us today to learn more about how we can help you with your business bankruptcy in Pasadena and Los Angeles.