Financial problems resulting in bankruptcy can be threatening, especially for small and medium-sized businesses. Such a situation is not uncommon and many people and organizations can be seen facing similar situations. However, there is absolutely no need to panic as there are provisions available to protect your business interests. Lawyers of Los Angeles based law firm Recovery Law Group enlighten that you can opt for either restructuring of debt under Chapter 11 bankruptcy or opt to liquidate your assets under Chapter 7 bankruptcy to get rid of your dues. Consultation with bankruptcy lawyers can let you be aware of your options.
Can Bankruptcy Help Small or Medium Business Undergoing Financial Distress?
Increasing expenses and loss of revenue are two major reasons why a business can be in financial distress. In case the situation has worsened and you fear closure of the company and the rippling effect it will have on your guaranteed obligation, you need to consult bankruptcy lawyers. They have experience in dealing with different types of businesses like:
- Corporations
- Sole proprietorships
- Partnerships
- Limited liability partnerships (LLPs)
- Limited liability corporations (LLCs)
Due to the various myths associated with bankruptcy, it is often the last option considered. However, it is the best legal solution available to get rid of insurmountable debt. Bankruptcy attorneys can help small and medium business owners get rid of debts using either Chapter 7 bankruptcy or Chapter 11 bankruptcy proceedings.
Why Choose Small Business Bankruptcy Lawyers?
Financial difficulties can be quite confounding. Do you have a legal counsel who has experience in dealing with specific needs of businesses? Any problems including long term leases, business loans, and payroll, personal guarantee on business debts or tax problems can be effectively handled by bankruptcy lawyers. They can help map out a strategy to keep your business open or close it with a reduced impact on people involved. Consulting a bankruptcy lawyer is one of the most important steps in handling financial distress.