Putting up a business can sure become an exhilarating experience, especially if you see it growing on a daily or monthly basis. You want to keep up with the latest trends in the market today, as such, you try to make some upgrades with the help of some legal lending institutions.
However, what if one day your business suddenly goes on a slump, making you unprepared for its consequences? Add the fact that you still have to pay off a sizable amount of the debts you incurred while putting up the business.
While the situation can completely spiral out of control, you can always hire bankruptcy attorneys in San Diego to help you pull through the situation.
What is a business bankruptcy?
- Business struggles to pay off their debts
- Business owners can file either of the following bankruptcy cases:
- Chapter 7
- Chapter 11
- Chapter 13
But, these all still depend on the debt levels and financial situation of the business itself
What’s the resolution for each kind of business bankruptcy filed?
- Chapter 7 bankruptcy = liquidation of the business with its assets equally distributed to creditors
- Chapter 11 or Chapter 13 bankruptcy = reorganization of the business’ debts while the company continues its operations
Should you hire the services of a bankruptcy lawyer?
- Sole proprietors can have the option of filing their bankruptcy case personally. But, for businesses, it’s imperative to hire a bankruptcy lawyer.
- Bankruptcy lawyers can help you walk through the entire process with much ease as compared to filing it on your own.
- Filling up a form
- Pay for the filing fee
- Filing of disclosures
- Disclosure of payment plan
- Bankruptcy process takes a long time to resolve, depending on the case
- Chapter 7 bankruptcy = 4-6 months
- Chapter 13 bankruptcy = 4-6 months
- Chapter 11 bankruptcy = 1 year
Putting all these things into perspective, it’s best to hire the services of a bankruptcy lawyer to help you get through the case as smoothly as possible.