What Does Business Bankruptcy Actually Do?

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Consider your legal entity. If you have done business as a sole proprietorship, DBA, general partnership, you automatically might want to consider going the personal bankruptcy route.

This is an excerpt from our free ebook, Business Bankruptcy.

Your business debts are all personal debts, because there is no separation between you and the business.

If you have a Limited Liability Company, S or C corporation, etc., then as a separate business entity, you will be closing the debts of your business.

At the end of the day, a business bankruptcy is the court system’s best answer (and mostly a process) for which the State, your creditors, and you decide how to best divvy up the assets that remain; liquidate your holdings and pay off what can be paid of the debt.

After that process is completed, the business debts of yesterday have been considered closed.

Most businesses close their business when entering a bankruptcy, however, there have been businesses known to not only continue to operate during the bankruptcy process; but they have also been known to make a comeback after the bankruptcy process.

If you wish to continue to operate your business and go through bankruptcy, make sure to find a qualified California business bankruptcy attorney to help guide you through this. You will need resources to pay the attorney for their guidance. Typically, this will be needed upfront, as your credit worthiness is implicitly not there.

Business Litigation Lawyers in Orange County California