Small Business Bankruptcy in Los Angeles
Understanding Bankruptcy Options for Small Businesses
Small businesses play a vital role in the economy, but financial challenges can arise even in well-run operations. Cash flow interruptions, unexpected expenses, creditor pressure, or tax obligations can quickly become overwhelming. In these situations, bankruptcy may offer meaningful relief and an opportunity to regain control.
At The Bensamochan Law Firm, we work with small business owners throughout Los Angeles to evaluate bankruptcy and debt relief options with clarity and care. Filing for bankruptcy does not automatically mean closing your business. In many cases, it can provide time, protection, and structure to reorganize finances and preserve operations.
What are the options available ?
Every business is different, and the appropriate form of bankruptcy depends on the structure of the business, the nature of the debt, and long-term goals. We assist sole proprietors, partnerships, and closely held businesses in exploring the following options:
Chapter 7 Bankruptcy
Chapter 7 may be appropriate when a business is no longer financially viable. This process involves the orderly liquidation of assets to address outstanding debts. While it often results in the closure of the business, it can provide a clean resolution and relief from ongoing creditor pressure.
Chapter 13 Bankruptcy
For sole proprietors with regular income, Chapter 13 may allow continued operation of the business while debts are reorganized through a court-approved repayment plan. This option can help address arrears, consolidate obligations into a single payment, and stop collection actions while the business stabilizes.
Chapter 11 Bankruptcy
Chapter 11 is a reorganization option designed for businesses that need flexibility to restructure debt while continuing operations. Through a court-approved plan, businesses may renegotiate obligations, manage tax liabilities, and maintain relationships with employees, vendors, and customers.
Subchapter V (Small Business Reorganization Act)
For qualifying small businesses, Subchapter V offers a streamlined version of Chapter 11 designed to reduce cost, complexity, and time. This option can allow business owners to retain control while working toward a practical reorganization plan.
Not every business benefits from filing bankruptcy, and alternative debt relief strategies may sometimes be more effective. Attorney Eric Bensamochan evaluates each case individually, considering the business structure, financial condition, and future objectives before recommending a course of action.
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CALL FOR YOUR FREE CONSULTATION
Regardless of your situation, know that Eric Bensamochan can help! Call The Bensamochan Firm at 818-574-5740 to learn more today.
The Bensamochan Law Firm Inc. assists clients in a number of areas in California, including Agoura Hills, Thousand Oaks, Westlake village, Calabasas, Oxnard, Camarillo, Ventura, Santa Barbara, Encino, Tarzana, West Hills, Woodland Hills, Sherman Oaks, Northridge, Chatsworth, Simi Valley, Sylmar, Pacoima, San Fernando, Reseda, Van Nuys, North Hollywood, West Hollywood, Burbank, Hollywood, Los Angeles, Porter Ranch, Lake Balboa, Canoga Park, Winnetka, Santa Ana, Riverside, Tujunga, Pasadena, Glendale, Venice, Santa Monica, and Westwood.
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