There are endless reasons that demonstrate the failure of a small scale business. Even though few are under control others are beyond that. It is not an individual responsibility that helps in determining the failure or success of a company. But being an entrepreneur, you have to know what you have to since there are lots of options among which bankruptcy is one best choice.
When to file bankruptcy?
However, you have to know what the exact time to file bankruptcy is and this is when you are subjected to multiple risk factors. These situations happened, especially if the complete business is handled by single proprietorship. In such cases, a bankruptcy attorney in Los Angeles can be a helping hand to differentiate and protect your personal and business life. On the other hand, if you have an LLC (limited liability Corporation) then you will always be on the safe side.
Different types of Bankruptcy
You might not be familiar with all the different types of bankruptcy yet you have to go through all of them. As soon as you take a decision to file bankruptcy, then you have to work on the different types available. Even though there are many different types, but the small-scale business is responsible only for the two major types of Bankruptcy.
- Chapter 7 bankruptcy: One of the traditional bankruptcy in which you have to either save for or give up your property for the secured debts.
- Chapter 13 bankruptcy: Here you will not have a complete chance to get rid of debts either by restructuring certain part of your payment or get rid of certain part of the debts.
The process involved
Once you get a clear picture of bankruptcy then you can move forward, taking the right decision and then you can easily handle the complete process.
- The first and the foremost step you need to take the help of the bankruptcy attorney in Los Angeles. They are professionals in handling small or a large scale business bankruptcy filing. Managing them on your own is truly a wrong decision upon which you have to face legal issues and financial troubles. So make a wise decision by choosing the best attorney who is experienced in the field of bankruptcy.
- Fill a form and then submit the required documents to the Attorney. The useful information will be gathered by them so that it becomes easy to file a petition.
- Then ask the court for permission to grant a particular chapter of bankruptcy based on which you will be scheduled a particular time to address your issue.
- After that, the court will grant you with “stay” order. In this scenario, the creditors are not at all given permission to collect anything from you.
- Finally, you have to wait until the last proceedings upon which you will be given final judgment by the court.
In fact, bankruptcy might not be one and only factor, but still concentrating on the circumstances can be a lot more beneficial. In exceptional cases, you will end up taking right decisions if you consider bankruptcy as an ultimate one for a small scale business.
Author Bio:- My name is Selena Rojhani, having undergraduate degree in art history, with honors and attended UCLA School of Law and received juries doctor degree in 1998. I worked in private practice as an associate attorney and in-house counsel, alongside the best lawyers in the nation.