Helping all types of companies effectively resolve debt
Doing business requires risk, and those risks do not always work out. However, the debts that can result from failed ventures, overextension or mere bad luck all too frequently hobble businesses in Northridge and Encino that otherwise have great potential for success. Business bankruptcy can allow these organizations to get a second chance to be successful, but it is not something that should be taken lightly. Our Ventura business bankruptcy attorneys at the Law Office of Michael H. Raichelson. can examine your situation to determine if bankruptcy is appropriate or if other options are available.
Your business bankruptcy options
In terms of bankruptcy, businesses in Sherman Oaks and Van Nuys generally have two options:
- Chapter 7 — Liquidation under Chapter 7 requires a business to turn over its assets in order to receive a discharge of debt. This is frequently the better option for companies that intend to wind up and cease doing business. However, Chapter 7 for small businesses may also be a viable option for companies with few assets.
- Chapter 11 — While technically available to individuals as well, Chapter 11 is more frequently associated with businesses. This process allows a company to reorganize and renegotiate many of its debts while continuing to do business.
Choosing between these two types of business bankruptcy means choosing between liquidation and reorganization. Because many businesses in Woodland Hills are essentially defined by their assets, liquidation often — although not always — means the end of your business. Reorganization, however, requires a great deal of creditor involvement and can be a lengthy and complicated process that may not be appropriate for many small businesses. Making the choice requires a thorough analysis of your company's financial situation, as well as a realistic understanding of your future business goals.
Why business bankruptcy is different
Chapter 7 and Chapter 11 are available to both businesses and individual consumers. Chapter 13 is not available to business organizations, but may be an option for sole proprietors under certain circumstances. The primary differentiator between business and personal bankruptcy, however, is the likelihood of resistance from creditors. Business debtors often have a few large creditors who may be more likely to take an active role in bankruptcy proceedings. An experienced bankruptcy attorney, however, can help you more effectively deal with creditors who may attempt to intervene in the bankruptcy processes.
Our team can help you help your business
Unmanageable debt will continue to addle your business until you take steps to change the situation. Law Office of Michael H. Raichelson offers businesses throughout Oxnard and Ventura the benefit of more than 18 years of bankruptcy experience. Our attorneys are committed to working closely with you to help you resolve or manage business debt and allow your company to prosper. Call our Woodland Hills office today at 818-444-7770 or contact us online to set up a free initial consultation with one of our knowledgeable business bankruptcy lawyers.