Do I Have to Close the Doors of My Small Los Angeles Business After Filing for Bankruptcy?
Issues ranging from reduced sales to increasing regulation have caused many business owners to wonder if they can continue operations. Your decision to close your doors largely depends on your ability to repay outstanding debt and the likelihood of returning to a profitable state in the future. You can use bankruptcy either to close your business or to save it. An experienced small business bankruptcy attorney in Los Angeles can guide you through the detailed analysis you need to help identify the type of business bankruptcy that makes the most sense.
If you do not want to continue business operations, you may qualify to file for Chapter 7 bankruptcy to liquidate the assets, partially repay creditors from the proceeds of the liquidation and close the doors debt-free. However, you may believe your business can thrive in the future if you can just make it through temporary financial challenges. In this case, a Chapter 11 filing can help you restructure debt. By negotiating new terms for outstanding debt with each creditor, you can gain extra time through extending the loan period. As business conditions improve, you have the potential to remain open for many years to come.
Every set of circumstances is unique. Some businesses need to close simply because they have insufficient funds to repay outstanding debt even under restructured terms. But if you have a strong commitment to remaining in business, you need to talk with a Los Angeles business bankruptcy lawyer with the experience required to thoroughly review your finances — and help forecast your prospects for future success.
The Law Offices of Michael Jay Berger provides the objective analysis you need to determine the financial prospects of your business. However, we also listen to your personal goals and objectives. With over three decades of experience and a detailed knowledge of bankruptcy law, we have helped many businesses restructure their operations through Chapter 11 and continue successfully.