Corporate bankruptcy looks a little different from individual bankruptcy. It affects a larger group of people, and typically involves higher debts than the latter. Skilled civil litigation attorneys in California can make this work for your company.
Bankruptcy is not the end of your business, and working with a competent legal worker will help you get the best outcome possible.
Types of Business Bankruptcy and How They Work
There are three main types of business bankruptcy, which are designed to help companies stay functional even during hard economic times.
Chapter 7 – Liquidation
Liquidation means selling off your assets and using the profits to pay your debts. Many individuals and small companies choose this option because it suits them best.
Filing for this type of bankruptcy entails selling all your non-exempt assets to pay back the debt. If you have a small enough business, you may have only a few qualifying assets, meaning you won’t need to pay back all of your debt.
For example, if your business assets only include a few boxes of products, this will be the best choice for you.
Chapter 11 – Business Reorganization
A business reorganization is one of the solutions available if a company cannot pay all of its debt. Instead of going out of business, a company will change how it operates to address its financial crisis and ensure future financial health.
This type of bankruptcy is complex to navigate and requires an expert’s touch.
Chapter 13 – Reorganization of Bankruptcy
Reorganization of bankruptcy does not forgive your debt but instead gives you an extended timeline of when you have to pay it off.
For example, a company will develop a five-year plan for paying off its debt and make financial changes to be able to meet those goals.
Sticking to your repayment plan will keep your company in good standing. At the end of the plan, any remaining debt will likely be dismissed in court.
Bankruptcy and Civil Litigation Attorneys
Civil litigation attorneys can provide vital information to their clients regarding paperwork, how to approach bankruptcy, and what to expect.
Having a guide will help you make the most of your experience so you can rebuild your company.
What to Look for in a California Civil Litigation Attorney?
When choosing civil litigation attorneys in California, it is essential to find a person you can trust.
First, look for a good communicator. When you’re in the middle of filing, it’s important to know you can rely on your attorney to be there when you need them.
Experience is another essential quality. Someone who has spent years in court or dealing with bankruptcy papers will be able to recognize common pitfalls and steer you away from them.
Someone who specializes in bankruptcy can offer more insight than a general attorney. It pays to do some research and look for a lawyer or law firm with great testimonials and a relevant specialty.
Choose Experienced California Civil Litigation Attorneys from LibertyBell Law Group
If your company is going to file for bankruptcy, it’s time to start looking into business law attorneys in California. Bankruptcy can be complicated, but working with an experienced lawyer will demystify the situation and help you complete it efficiently.
Our team stands out because of the excellent service we provide and the passion we have for every case. We fight hard in court, do thorough research, and deliver the best results every time.
To schedule your consultation with our legal experts, contact us at 866-320-4854 at LibertyBell Law Group today!