Owning a business is the dream of many entrepreneurs around California. And even after filing Chapter 7 bankruptcy to relieve past debts, many business owners do not abandon that dream.
Of all available forms of business bankruptcy, Chapter 11 is the only one that allows for restructuring of a jointly-owned business, LLC or corporation (Chapter 13 restructuring is only available for sole proprietorships). Although the Chapter 11 process can be difficult, it is an opportunity to revive a business that may still be viable despite unanticipated hardships.
People continue to struggle with student loan debt. The only form of debt that causes more hardship is mortgage debt. Student loans beat out credit card debt and surpass health care expenses. Unfortunately, unlike credit card debt and health care expenses student loan debt is not as easy to manage.
As a business owner, juggling mounting debt, calls from creditors, the threat of losing your business and more can be overwhelming. Whether your business is a sole proprietorship, partnership, LLC, corporation or more, you may question what the best route forward is when finances dwindle and your options seem scarce.
A common term associated with filing Chapter 7 bankruptcy is "liquidation." Many California business owners understand the term well. After all, businesses do not have to file bankruptcy to liquidate their assets. However, it can be difficult to know where to start when it comes to filing bankruptcy and proceeding with liquidation.
The decision to file bankruptcy is not always an easy one for California business owners. They worry about how bankruptcy might impact their business and their own current finances.
The business world is full of adages that encourage risk-taking (“nothing ventured, nothing gained”) and seizing opportunity (“strike while the iron is hot”). But this advice, while well-intentioned, needs to be tempered by appropriate caution. Even when a business is a booming success and continued growth seems inevitable, fortunes can change quickly.
Debt is nearly unavoidable these days. Students graduate from college with loans to pay back, and homeowners have mortgages hanging over their heads for years. Businesses are no exception to this trend.
There are all kinds of expenses that can come up in connection to running a business. Some of these costs are needed to put a company in a strong position to compete and succeed. However, some are unnecessary and end up bringing little benefit to a company.
Any business can encounter problems that seem insurmountable. When that happens, business owners have a serious decision to make: should we declare bankruptcy? Filing for bankruptcy helps individuals and businesses get a clean financial slate, but not every form of bankruptcy works for all businesses. For businesses, the right choice depends on how the company is organized – sole proprietorship, corporation, LLC, or otherwise.