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.
A Chapter 7 discharge (also known as liquidation) is obtained where the indebted enterprise or person is able to prove that they cannot possibly pay their debts in the next three to five years. The debts are then entirely unenforceable. This procedure does not apply to secured debts, outstanding tax, educational credit, child maintenance and divorce settlements (alimony). It is only available to someone once in an eight-year period.
If payment is indeed possible in the next 3-5 years, the indebted party may seek Chapter 13. According to this order, the debtor is obliged to pay their debts, either partially or entirely, according to their ability to do so. It is sometimes used where the debtor is trying to keep certain assets, such as their home.
Sometimes a business suffers financially but keeps its doors open. It then has the option of Chapter 11. This order lets the business stay open, on condition that its creditors have approved a repayment schedule. Chapter 11 proceedings are thus only available to companies or traders who are still able (or still desire) to do business and make money.
Bankruptcy is not a pleasant outcome. It usually involves the loss of money or other assets. However, managing the process can be much easier with the right legal advice.
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.
A Chapter 7 discharge (also known as liquidation) is obtained where the indebted enterprise or person is able to prove that they cannot possibly pay their debts in the next three to five years. The debts are then entirely unenforceable. This procedure does not apply to secured debts, outstanding tax, educational credit, child maintenance and divorce settlements (alimony). It is only available to someone once in an eight-year period.
If payment is indeed possible in the next 3-5 years, the indebted party may seek Chapter 13. According to this order, the debtor is obliged to pay their debts, either partially or entirely, according to their ability to do so. It is sometimes used where the debtor is trying to keep certain assets, such as their home.
Sometimes a business suffers financially but keeps its doors open. It then has the option of Chapter 11. This order lets the business stay open, on condition that its creditors have approved a repayment schedule. Chapter 11 proceedings are thus only available to companies or traders who are still able (or still desire) to do business and make money.
Bankruptcy is not a pleasant outcome. It usually involves the loss of money or other assets. However, managing the process can be much easier with the right legal advice.
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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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