Small businesses are the backbone of the economy of Los Angeles and the country as a whole. Even so, every year, thousands of these companies go out of business. To protect the future of your company, it may be necessary to file for bankruptcy. However, this is not a decision to make lightly. No two bankruptcy cases are the same.
Your choice to file for bankruptcy can make a positive difference in your life for years to come. At the Law Offices of Terrence Fantauzzi, a Los Angeles small business bankruptcy lawyer could help you choose the right debt relief plan for you and submit all legal documents to the court on your behalf.
Chapter 7 Bankruptcy for Small Los Angeles Companies
Managing a company with employees is challenging, and there may be a point where the business is no longer profitable. Owners may be overwhelmed with commercial rent and other forms of debt. Filing Chapter 7 bankruptcy may be the best option in these scenarios.
After filing a Chapter 7 bankruptcy, the court will institute a temporary halt on collection efforts, allowing for a thorough and balanced winding down of the business. During this process, the court can oversee the liquidation of some of the company’s assets to pay back creditors.
Though a Chapter 7 bankruptcy will result in the end of the business, it can provide essential protection for owners and employees. Terrence Fantauzzi is a skilled bankruptcy attorney in Los Angles who can help small business owners get out of debt with this process.
Sole Proprietorships and Bankruptcy Protection
Seeking bankruptcy protection does not automatically mean that a company must cease operations. The bankruptcy code recognizes that many small companies are a person’s sole source of income and represent a family’s entire financial foundation. Chapter 13 bankruptcy allows sole proprietors to seek protection from creditors while staying in business.
During this process, the court will agree to a repayment plan for the business owner. The owner will make regular payments to the court over a period of three to five years. At the conclusion of the program, the court will discharge all of the sole proprietor’s eligible debts. Small business owners should reach out to a knowledgeable attorney like Terrence Fantauzzi to learn more about the benefits of this form of bankruptcy.
Let a Los Angeles Small Business Bankruptcy Attorney Fight for Your Future
Unfortunately, many small businesses run into financial trouble from time to time. Debt becomes overwhelming, and it is no longer possible to turn a profit. If this has happened to your company, filing a bankruptcy petition may be the best way to seek protection from debt collectors.
Terrence Fantauzzi, a Los Angeles small business bankruptcy lawyer, could help you file a Chapter 7 or Chapter 13 case with the court. Whether you are hoping for a peaceful winding down of your company or trying to stay in business, bankruptcy could be an option for you. The Law Offices of Terrence Fantauzzi could help you determine the right bankruptcy chapter for you. Schedule a consultation with us today to learn more about how we could help you protect your business.