Small Business Bankruptcy

Liquidation and reorganization

Businesses can file under Chapters 7, 11, and a new form of bankruptcy created in early-2020 referred to as Sub-chapter V. Depending on the size and complexity of your business and whether you intend to continue operating, you may be able to liquidate or reorganize under these chapters.

column.jpg
 

Chapter 7 Liquidation

Ending your business

Chapter 7 is reserved for business that want to shut down and liquidate their assets. Upon the filing of a Chapter 7 bankruptcy, the business immediately ceases operations and a trustee is appointed to liquidate the business for the benefit of creditors.

 

Small Business Chapter 11

Simplified reorganization for small business that want to continue operations

The small business Chapter 11 bankruptcy (also called Sub-chapter-V) was created in 2020 to deal with the problem that a "full" Chapter 11 is often to complex and expensive for smaller businesses.

 

Chapter 11 Bankruptcy

Bankruptcy for large businesses

A business that wants to continue operation and does not qualify as a small business for Sub-Chapter V, must file a Chapter 11 bankruptcy. The process for this is complex and requires experienced bankruptcy attorneys.

 

Heston & Heston

Irvine: 949-222-1041 / Riverside: 951-290-2827

4192 Brockton Avenue, Suite 100, Riverside, CA 92501
19700 Fairchild Road, Suite 280, Irvine, CA 92612

  • Facebook
  • Facebook

©2020 by Heston & Heston, Attorneys at Law

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