Business Bankruptcy in Long Beach

In this economic climate, many Long Beach businesses are facing financial difficulties that may seem to threaten their very existence. Struggling under considerable debt, increasing numbers of businesses are facing closure unless they can find a way to work out of their financial problems. If your business is in trouble, Long Beach, California bankruptcy attorney Laura E. Claveran of the Claveran Law Firm can help you assess your options.

Bankruptcy is one of the options that you may consider. Long Beach businesses may file for relief under the Federal Bankruptcy Code, which gives them the opportunity to eliminate debt, liquidate their debt, or restructure their businesses with a payment plan to repay some or all of their debt over a period of time. In essence, bankruptcy gives a business in financial difficulties a “fresh start.”

The Bankruptcy Code provides for different types of bankruptcy filings. Under Chapter 7, a partnership, corporation, or other business entity with primarily consumer debt seek the relief of total liquidation, discharging their debt. A Chapter 7 liquidation requires the debtor to satisfy a complex “means test” in order to qualify for relief.

Chapter 11 of the Bankruptcy Code allows businesses to take advantage of a stay of debt collection, to restructure their operations, and to propose a plan of reorganization to allow their business to continue as a going concern. Under Chapter 11, creditors and debtors agree to a plan and the newly reorganized company emerges from bankruptcy with a plan to repay some or all of its debts over three to five years.

There are advantages and disadvantages to bankruptcy filings, and bankruptcy attorney Laura E. Claveran will help you understand what impact a bankruptcy filing will have on your business. At the Claveran Law Firm, we believe that bankruptcy is only one of the options available to businesses in trouble.

Contact us at 888.838.0431 to discuss how we can help you, or complete our online contact web form and we will respond to you promptly.