Is a bankruptcy the best option for my struggling business? 4 Answers as of November 04, 2010

I own 3 small retail stores, the business is struggling, it is an S corporation with 3 shareholders. I will not survive in the business for too long? What are my options? I have 2 years remaining in a commercial lease, and it will not be easy for the mall to rent out this locations.( I already talked to them). Should I file for bankrupt before I default on my rent on the lease or after I default on the lease?

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The Law Offices of Robert L. Driessen
The Law Offices of Robert L. Driessen | Robert L. Driessen
I would talk to a bankruptcy attorney. This is not something someone can answer without looking into the matter closer.
Answer Applies to: California
Replied: 11/4/2010
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
You have two bankruptcy choices with a corporation: Chapter 11 or Chapter 7. You use the former if you want to stay in business. Chapter 11 is very involved and quite expensive, so you need to have a viable plan of how you're going to reorganize (i.e. increase profits, etc.) before you file so you can survive the added costs of the Chapter 11. It can be a very powerful tool, but you need to assess the costs and benefits and all other options first. You should consult with a qualified bankruptcy attorney in your area for more information.
Answer Applies to: California
Replied: 11/4/2010
Diefer Law Group, P.C.
Diefer Law Group, P.C. | Abel Fernandez
That is up to you. You can file before or after.
Answer Applies to: California
Replied: 11/4/2010
Sussman & Associates
Sussman & Associates | Mitchell Sussman
There are way too many variables here. You need to meet with a qualified bankruptcy attorney.
Answer Applies to: California
Replied: 11/4/2010
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