The uncertain economic climate means that businesses of all sizes are facing tough decisions, such as potentially having to file for bankruptcy and this is where experienced civil litigation attorneys in California can help.
If you are filing for bankruptcy and experiencing creditor harassment, trust that a reliable civil litigation attorney can make the situation better for you—ensuring that they will get the job done by helping you get the peace of mind you need.
What Do Civil Litigation Attorneys Do for their Clients?
When your business goes bankrupt, you usually face large amounts of debt and other major financial issues.
Civil litigation attorneys can help you file for bankruptcy and can also help with related matters. They can work with you to find the best type of solution suited to your financial situation and needs.
These attorneys can help you restructure your company, deal with creditors, provide you with the proper representation, and more. They will make the transition much easier and simpler for you, making the experience more bearable.
What is Bankruptcy?
Bankruptcy is an option when a person or company cannot pay their debts or meet their financial obligations. It’s a legal process that must go to court. At best, filing for bankruptcy gives companies the chance to start over.
It affects businesses of all sizes. On the news, you see companies as large as Washington Mutual or General Motors declaring bankruptcy, but that doesn’t mean they will go away forever—those two both emerged from bankruptcy within a few months.
Companies that file for bankruptcy are no longer responsible for their debt, which means creditors can’t legally harass them or seek repayment.
California Civil Litigation – Types of Bankruptcies
There are several types of bankruptcy that serve different purposes, these include:
- Chapter 7 focuses on liquidating assets to pay off debts, and is most common for small businesses.
- Chapter 11 is known as a reorganization, and this type prepares a company to reopen and reorganize.
- Chapter 13 is a form of debt repayment plan that makes debt repayment more realistic for companies.
Chapter 7 Bankruptcy
This type of bankruptcy is designed for people or companies with few assets. It allows individuals and companies to handle unsecured debt, including credit card debt and other forms.
When you file for Chapter 7, you’ll be planning to pay off debts by selling assets. That makes this option most appealing to companies without valuable assets, or whose assets are mostly exempt from personal property.
Chapter 11 Bankruptcy
Chapter 11 is popular with businesses because it allows them a way to reorganize their company and reopen it in a way that will be profitable. This gives companies the chance to create a strategy to boost income and cut down on costs.
For example, your company can raise prices for services, cut down on staff, or find new, more affordable suppliers to increase profits.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is similar to Chapter 7, but it’s an option available to those who have more income and assets. Businesses can create debt repayment plans over a longer period of time, making them more manageable.
Instead of having to sell assets, filers will be able to keep them and instead focus on repaying their debts according to the new schedule.
Experienced Civil Litigation Attorney in California to Handle Creditor Harassment
When you file for bankruptcy, you need to work with business law attorneys in California, these legal professionals will ensure your paperwork is correct, help you ward off creditor harassment, and even represent you in court.
Bankruptcy is a major change to your business, regardless of what approach you take. Let a business litigation lawyer guide you through the process and make sure you emerge ready for a new approach to your company.
At LibertyBell Law Group, we work closely with clients to deliver excellent results. We advocate tirelessly for our business clients both in and out of court.
To learn how experienced civil litigation attorneys in California can improve your company and help you navigate bankruptcy, contact us at 866-320-4854 at LibertyBell Law Group today!