When it comes to skimping on spending money there are certain areas where it is worth it but other places where it should not be done. One of these is if you ever need to hire a lawyer for bankruptcy Downey, or anywhere else. No one is saying that you need to hire the best bankruptcy attorney Downey has but you should certainly search among the best bankruptcy lawyers Downey has within your price range.
If your small business is struggling with debt, small business bankruptcy Downey, or wherever, may provide some relief. Whether bankruptcy can help depends on a number of factors, including:
- The legal form of your business, for example, is your business a sole proprietorship, general partnership, corporation, or Limited Liability Company?
- Whether you are personally liable for business debts
- Whether you want to close your business or keep it running, and
- How much and what types of debts you have.
Since lawyers bankruptcy Downey don't come cheap, it's important to work with an experienced yet affordable attorney who can really help you work through this process and achieve your goal of getting out of debt.
Depending on the circumstances, small businesses have three potential bankruptcy options:
Chapter 7 – Chapter 7 is a bankruptcy option for debtors that do not have the means to restructure their obligations and continue in business. In Chapter 7, a trustee is appointed, available assets are sold, and creditors are paid to the extent funds are available. Partnerships, limited liability companies, and corporations are all eligible to file bankruptcy under Chapter 7. Depending on their income, individuals who own and operate small businesses as sole proprietorships also may file bankruptcy under Chapter 7.
Chapter 13 – Chapter 13 can be a restructuring option for small businesses owned and operated by individuals (that is, sole proprietorships). Only individuals may file Chapter 13, so it is not an option for businesses operated through partnerships, limited liability companies, or corporations. Chapter 13 eligibility is also subject to debt limits. Currently, an individual cannot file Chapter 13 if he or she owes more than $383,175 in unsecured debt or $1,149,525 in secured debt.
Chapter 11 – The other bankruptcy option for small businesses is Chapter 11. Generally, small businesses shy away from Chapter 11, because it is expensive, risky, time-consuming, and complex. Chapter 11 is the only bankruptcy option, however, for a small business seeking to restructure and continue in operation if it is owned by a partnership, limited liability company, or corporation. Chapter 11 is also the only bankruptcy option for individual business debtors who want to reorganize but owe too much money to meet Chapter 13’s eligibility requirements.
Lawyers for bankruptcy Downey and other places can advise you about all the necessary documentation and paperwork you need to support your case, they know local court rules and procedures, and they can answer any critical questions you may have about the process along the way. They are worth spending a little extra money on so that your case can proceed smoothly.
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