Bankruptcy Attorneys In Los Angeles County: Effective Management Of Business Debt
Starting a business is one of the most exciting economic activities, and for many people it represents the independence of self-employment and the possibility of unlimited financial returns. However, if the business fails, there are legal processes which need to be followed in addressing its debts, and bankruptcy attorneys in Los Angeles County can assist.
The legal system of California makes accommodation for financially unsuccessful companies. If your company has proven unsuccessful and you have outstanding debt, it is advisable to approach liquidation attorneys about possible measures to eliminate or ease present 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.
Chapter 11 is usually resorted to by companies. It allows them to continue operating, but only insofar as their creditors have accepted their strategy to meet existing liabilities. This option assumes that the indebted business is still capable of generating revenue and has a financial future, so where the company has failed entirely it is not applicable.
Bankruptcy is not a desirable situation. It is typically associated with financial loss and ruin or unemployment. However, appropriate legal guidance can make this difficult event easier to work through.
The legal system of California makes accommodation for financially unsuccessful companies. If your company has proven unsuccessful and you have outstanding debt, it is advisable to approach liquidation attorneys about possible measures to eliminate or ease present 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.
Chapter 11 is usually resorted to by companies. It allows them to continue operating, but only insofar as their creditors have accepted their strategy to meet existing liabilities. This option assumes that the indebted business is still capable of generating revenue and has a financial future, so where the company has failed entirely it is not applicable.
Bankruptcy is not a desirable situation. It is typically associated with financial loss and ruin or unemployment. However, appropriate legal guidance can make this difficult event easier to work through.
About the Author:
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.