Serving the Tri-Valley and the East Bay Region
Small businesses that struggle with debt face serious risks. If your business cannot free up cash flow, moving from the red into the black, you could end up closing your doors. Depending on the nature of your business structure and finances, you may even be held personally liable for your business debts.
Fortunately, there are debt relief options available to small businesses in the Tri-Valley and the East Bay. At Khan Law, we help small-business owners understand their options and exercise their rights. Perhaps most importantly, we help businesses keep their doors open.
Debt Relief for Businesses and Business Owners
Depending on the legal structure of your business and your specific business debts, you may have several debt relief options.
Chapter 7 bankruptcy for businesses: Chapter 7 bankruptcy can be the best option for some sole proprietorships and small businesses. This allows proprietors to ensure that their business debts do not end up as personal debts. Although Chapter 7 bankruptcy protection is known as liquidation bankruptcy, using California state and federal exemptions may allow you to protect some or all of your business assets while obtaining debt elimination.
Chapter 13 bankruptcy for businesses: Often considered repayment bankruptcy, this type of bankruptcy protection allows some business owners to file adjusted debt repayment plans with the bankruptcy court, putting an end to creditor harassment. In certain situations, when personal and company assets are intertwined, Chapter 13 bankruptcy helps business owners protect their personal property and even avoid foreclosure.
Whether bankruptcy is right for you and your business depends on several factors, including your priorities and business goals. It is important to talk to a reputable lawyer if you are considering small business bankruptcy.
At Khan Law, we provide personalized and dedicated legal counsel to help businesses restore their financial freedom.