#business bankruptcy in Berkeley and Walnut Creek

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Reasons To Contact a Financial Consultant in Berkeley and Walnut Creek, CA

Being unable to deal with financial stress and honor their commitments often forces American entrepreneurs to file for business bankruptcy in Berkeley and Walnut Creek, CA. Whatever the reason for declaring bankruptcy, the concerned individual and the management should check the associated facts. The advantages will not seem too great unless one has the support of a financial professional or firm reputed for providing all kinds of bankruptcy services. ​ While the ordinary citizen may liken bankruptcy to financial ruin, this is not correct. Instead, knowing that this can be viewed as an opportunity to reorganize the business and begin a fresh start without worrying about the financial downfall is heartbreaking. Moreover, filing for bankruptcy enables one to delay the repayment of debts or reduce the payable sum substantially.

Types of Bankruptcy Protection A small business owner may choose between Chapter 7, Chapter 11, and Chapter 13 forms of bankruptcy, depending on the business operations or organization. While a sole proprietorship entity may file under all the Chapters, the corporations and partnerships can only opt between Chapter 7 and Chapter 11. Notwithstanding the type of bankruptcy, the business entities are provided with a temporary stay that prevents creditors from claiming their dues during this period. This helps the business entities to buy some time and arrange the funds if possible.

Business owners who file Chapter 7 have their businesses closed with the assets sold off to pay the creditors. Owners of a sole proprietorship often file for personal and business bankruptcy simultaneously to maximize the funds. Business owners opt for Chapter 7 when they are unable to resolve their credit problems and hope to pay off their debts with saving the business taking a backseat Chapter 11 may be filed by any type of business entity. This is viable for entities that have the opportunity to reorganize the business to overcome their debts and become profitable once again. The court usually devises a repayment plan for them, with the business operations being permitted to continue and the assets retained.

The business owners who go for Chapter 13 are confident of paying off their debts within 3 to 5 years by tapping into their future income. However, the plan must be approved by a court of law wherein the business owner must convince the court about the efficacy of their plan, which includes returning to profitability within a short time. The concerned business owner must file Chapter 7 when the court denies the plan.

Filing for bankruptcy is not the end of a successful business career, though. Instead, it may be used as a financial tool to resolve severe economic hardships.

It is advisable to contact a seasoned financial consultant in Berkeley and Walnut Creek, CA, to obtain timely assistance with financial matters, including deciding on creditor issues, creating an economic plan, and deciding when to file for bankruptcy.

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