Operating one's own business venture is an enthralling professional occupation, with the legendary benefits of being your own boss and the fabled limitless earning potential. But when businesses fall apart, the correct legal avenue needs to be selected in solving the issue of unpaid debts, and bankruptcy attorneys in Los Angeles County can help.
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.
If the debtor is able to pay the debts in the next three to five years, however, they may apply for Chapter 13. This option entails partial or total repayment of debts, based on the available income and assets of the debtor. It is useful if the debtor desires to retain ownership of their residential or other property.
If the business is able to continue profitable operations, they may opt for Chapter 11. This order permits continued operation, as long as the creditors of the business have accepted a repayment plan. The Chapter 11 option is therefore only available to companies who are able to proceed with ordinary operations and have not shut down completely.
Bankruptcy represents the ultimate failure of a business. It almost always implies the loss of money and a sour investment. Even so, it can be made less traumatic by professional legal assistance.
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.
If the debtor is able to pay the debts in the next three to five years, however, they may apply for Chapter 13. This option entails partial or total repayment of debts, based on the available income and assets of the debtor. It is useful if the debtor desires to retain ownership of their residential or other property.
If the business is able to continue profitable operations, they may opt for Chapter 11. This order permits continued operation, as long as the creditors of the business have accepted a repayment plan. The Chapter 11 option is therefore only available to companies who are able to proceed with ordinary operations and have not shut down completely.
Bankruptcy represents the ultimate failure of a business. It almost always implies the loss of money and a sour investment. Even so, it can be made less traumatic by professional legal assistance.
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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.
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