Filing for bankruptcy is not a decision that any business owner wants to have to make. However, in some instances, business bankruptcy in Newport Beach California may be the most reasonable option when your business debts have become insurmountable. If you are a business owner struggling with debt and considering business bankruptcy in Newport Beach California, you should put the effort into exploring your options. An experienced California business bankruptcy attorney can review your situation and advise you on what course of action would be most appropriate for you and your business.
When it comes to filing for bankruptcy, the way in which a business is organized will make a significant difference. For example, if a business is organized as a sole proprietorship or partnership, then the business is considered to be one and the same legal entity with the business owner or owners. This means that a so-called “business” bankruptcy would actually qualify as a personal bankruptcy, so you would need to consider the same bankruptcy options as you would for yourself personally, which would include Chapter 7 and Chapter 13 filings.
If a business is organized as a corporation, including a Limited Liability Company (LLC) or Partnership (LLP), then the business is considered to be its own separate legal entity and can file Chapter 7 or Chapter 11 bankruptcy, depending upon whether your intentions are to dissolve the corporation and have its assets liquidated, or remain in business and reorganize the company debt.
The intricacies of filing for business bankruptcy in California can be quite complicated, since the best option to choose depends a lot on the very specific circumstances surrounding your unique business operations. For more information about business bankruptcy, contact a local business bankruptcy attorney for a consultation.