Roseville Small Business Bankruptcy Attorneys
Founding and running a small business is part of the American dream. Many Californians, individuals in the Central Valley, and in Roseville itself aspire to be their own boss and pursue their own goals. For some people, their hard work and dedication is rewarded through a rapidly expanding and profitable business venture. Unfortunately, in other cases, despite long hours and hard work, the business simply does not take off or falls on hard times. During this time the company takes on significant debt and the level of debt starts to disrupt or hinder routine business operations. Business owners in these circumstances can face extreme anxiety as to what they should do next.
The attorneys of The Bankruptcy Group are proud to help dedicated and hardworking individuals during one of the toughest times of their lives. We understand that even considering bankruptcy is a big step for business owners, but it may also be a necessary one. Our team works one-on-one with business owners to determine whether bankruptcy is the right choice for your small business. To schedule a no-obligation confidential bankruptcy consultation, call our Roseville law firm at 1-800-920-5351 or contact us online.
Attorneys Can Attempt to Negotiate Debts Prior to a Bankruptcy Filing
Many business owners attempt to negotiate the debts the company has incurred prior to ever seeking out legal assistance. In many cases, the business owner was not successful and is now seeking a bankruptcy attorney. In these situations, it isn’t surprising that the owner is at least moderately skeptical of the chances for successful negotiations that permit a continuation of operations.
Having a bankruptcy attorney enter into the fray can change the dynamic of negotiations. At this point, the creditor is aware that the business is seriously considering all options, including a liquidation. Another helpful reminder for the creditor are the possibilities of receiving pennies on the dollar or nothing at all. In some cases, debtors manage able to stave off bankruptcy. In other instances, a bankruptcy filing may be necessary.
Some Business Bankruptcies Are Also Personal Bankruptcies
If your business is a sole proprietorship or a partnership, it is probable that your business bankruptcy is inherently also a personal bankruptcy. This is because the sole proprietorship does not provide for a separation of personal assets and expenses, in addition to business assets and liabilities. In the case of the partnership, this is true for general partners but not for limited partners. General partners are typically business owners who run the company and oversee daily operations. Limited partners are individuals who invest in the company but do not engage in daily operations.
Since assets are commingled and the bankruptcy is essentially a personal bankruptcy, all forms of bankruptcy are available. That means the business owner can use Chapter 7, Chapter 11, or Chapter 13 bankruptcy. However, practically speaking, most bankruptcies of this type occur in Chapter 7 or Chapter 13.
LLP, PC, LLC, and Corporate Bankruptcies Are Separate Entities Unless You Personally Guaranteed Loans
Limited liability partnerships, limited liability companies, and corporations are separate entities from your person. Thus, in many circumstances small business bankruptcies of this type will not necessarily include a personal bankruptcy. That means that the best bankruptcy options may be either Chapter 7 liquidation or a Chapter 11 bankruptcy.
Keep in mind that when you personally guarantee loans and other obligations extended to a company, the process is somewhat complicated. Here, a personal bankruptcy in addition to the business bankruptcy may be necessary to wipe away the full extent of the debt. Bankruptcies of this type will require careful analysis of not only your business finances, but also of your personal finances.
Small Businesses Can Work with a Roseville Bankruptcy Attorney
Facing a small business bankruptcy can be a difficult time in any business owner’s life. Luckily, you do have options and there are ways to recover from the situation. In many circumstances business owners are able to declare bankruptcy, eliminate their debts, and form a new company that engages in the same or a similar business as the previous one. Bankruptcy can provide you with the opportunity to learn from your experience, and run a new company without significant debts that limit operation and functionality.
To see if bankruptcy is the right decision for your small business, call a Roseville bankruptcy lawyer at The Bankruptcy Group today at 1-800-920-5351 or contact us online.