There are choices those Small Businesses Facing Bankruptcy in the Sacramento Area

As I noted in an earlier blog, and I have seen this as a bankruptcy lawyer, the
Sacramento area posted the third-most bankruptcies in the nation during the first
quarter. Whether you’re in Rancho Cordova, Fair Oaks, Orangevale or any other
community in the area chances are that you know some small business owner who
has had to declare bankruptcy.

Sole Proprietorship and Bankruptcy

If you’re a small business owner who is a sole proprietor that means that you and
your enterprise are seen in the eyes of the law as being one and the same. If you
can’t pay your business debts then that means those to whom you owe money can
attach your personal property.

Court Date

Of course, another person can’t simply take your property. They will have to take
you to court and prove to the court that you cannot and/or have not paid the debt.
The court can then award a judgment.

However, you can circumvent this action by filing for Chapter 7 Bankruptcy. As
I tell my clients in the Sacramento area who utilize my services as a bankruptcy
lawyer, there are many benefits to filing for Chapter 7 as a sole proprietor.

Chapter 7 Bankruptcy

Chapter 7, which may also be used for personal bankruptcy, protects the small
business owner in various ways. First, an automatic stay will be issued by the court
that will stop all collection efforts by creditors. Under Chapter 7, a certain amount of
property and equity is exempt from liquidation. That means that often you may keep
certain business assets, your home, vehicle and other items.

Other assets, that are not exempt will be liquidated and used to pay off your
creditors. With most of our cases, our clients get to keep their property. Debts that
are left over will be discharged, which means that they are in essence forgiven. As
I have discussed with many clients from the Sacramento area, there are various
safeguards that you can take advantage of in filing for Chapter 7 as a sole proprietor.
Working with a knowledgeable bankruptcy lawyer can help ensure that you get the
full benefit of the law.

Please contact our bankruptcy offices in Sacramento, San Francisco, Santa Clara, and
San Francisco California, at info@california-bankruptcyattorney.com or at 888-589-
1977 if you have any questions regarding bankruptcy.