Attorney Serving California Businesses Through Bankruptcy Options
A business in financial trouble has many options. Bankruptcy may resolve substantial debt, but is not ideal for every set of circumstances. Attorney Lawrence L. Szabo can meet with business owners and leaders and help them determine the best course of action for their specific outlook.
The Law Office of Lawrence L. Szabo serves business and individual clients throughout Alameda County, and Contra Costa County, California. Lawrence has been a bankruptcy lawyer for more than 35 years, and can deal with business bankruptcy matters of all levels of complexity. Contact us to set up a free consultation with Lawrence.
Filing Bankruptcy for Corporations or LLC's in the Oakland Area
Many small businesses form corporations or LLC's so as to divide the financial affairs and liability of the business and that of the individual owner(s). If debts become insurmountable, Chapter 11 debt reorganization may be appropriate. Business entities can file for protection under Chapter 11 business bankruptcy or Chapter 7 bankruptcy.
Chapter 11 business bankruptcy is preferable to a Chapter 7 because it does not involve immediate liquidation of the business' assets, allowing the company to continue operation. If you do not intend to continue to operate an incorporated business, it may not be necessary to file a Chapter 7 bankruptcy for the corporation. However, individuals who own small business corporations often personally guarantee the debts of the corporation. If you have personal liability for the debts of your corporation, you may want to consider filing for bankruptcy relief.
Filing Bankruptcy for Sole Proprietorships
If your business is a sole proprietorship, you are personally liable for your business debts. A Chapter 13 bankruptcy may resolve your financial troubles. A Chapter 13 allows you to continue to operate your sole proprietorship while your repay your debts through a Chapter 13 plan. You may also be able to discharge your debts by filing a Chapter 7. However, if you file for Chapter 7, you may no longer control your business assets, and it may not be possible for you to continue to operate your business.
You may be personally liable for a portion of the unpaid payroll taxes of your business corporation. If a large part of your business debt is in unpaid taxes, there are often better alternatives than small business bankruptcy. Many people are better served through tax workouts, or "offers in compromise," that pay only part of the debt and discharges the remainder.
Contact Our Skilled Oakland Business Bankruptcy Law Firm
To speak with a business bankruptcy lawyer who has the experience and knowledge to determine the best course of action for your business's particular circumstances, please contact us any time.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.