Small Business Bankruptcy

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Los Angeles Small Business Bankruptcy Lawyer

If you are a small business owner who is experiencing serious financial problems, bankruptcy could be a solution. The bankruptcy laws give you options. To determine which of these options are in your best interests, you need a skilled small business bankruptcy attorney.

The Los Angeles, California, Law Office of Cynthia L. Gibson, Attorney-at-Law provides business liquidation legal advice to all types of small businesses. We have extensive experience representing countless small businesses in Chapter 7 bankruptcy proceedings. We counsel small business bankruptcy clients throughout Southern California, including Los Angeles County and Orange County, and the communities of Los Angeles, Seal Beach, Gardena, South Bay, Torrance, Long Beach, Huntington Beach, Lakewood and Santa Ana.

When Filing for Business Bankruptcy Makes Sense

In situations where it seems unlikely that the business will ever be able to pay its debts and continue ongoing operations, a Chapter 7 bankruptcy filing may be appropriate. Under a Chapter 7 bankruptcy petition, the debtor turns all assets, except those exempted by the bankruptcy code, over to the trustee, to be sold to satisfy the creditors.

The primary benefit of a Chapter 7 filing for a business is the automatic stay, allowing the business to dissolve without fear of harassment or lawsuits from creditors. Upon the filing of the bankruptcy petition, the debtor immediately obtains the protection of the automatic stay provisions of the bankruptcy code. The automatic stay prohibits creditors from taking any further action to collect any debts included in the bankruptcy estate while the bankruptcy is pending.

Discharging Tax Debt through Bankruptcy

Additionally, small businesses can discharge most income tax debt, payroll tax debt, and sales tax debt through a bankruptcy filing. There are a number of conditions that must be first met and the IRS must assess your debt at least 240 days prior to your filing for bankruptcy. Our office can evaluate your situation and determine if you are eligible to discharge tax debt through bankruptcy.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

Contact the small business bankruptcy attorneys at the law offices of Cynthia L. Gibson, Attorney-at-Law, to schedule a free initial consultation.