Las Vegas Business Bankruptcy Lawyers

Running a small business is rewarding, but when times get tough, the stress and pressure can be too much to bear. Many business owners pour their life savings, sweat, and energy into building something meaningful for their families and communities. When debt piles up, revenue drops, or unexpected problems hit, it can be hard to find a way out, especially for small businesses.

At Larson & Zirzow, our Las Vegas business bankruptcy lawyers help Las Vegas business owners see that bankruptcy is not a failure; it’s a powerful tool that can protect what you’ve built or allow you to wind down a struggling company in an orderly way to minimize personal exposure. Our boutique practice focuses on real solutions that fit your needs, whether that means restructuring debt, saving the business through reorganization, or closing the doors responsibly and moving forward.

Your Options — Understanding Business Bankruptcy

For businesses, bankruptcy usually means looking at three options under the Bankruptcy Code: Chapter 7, Chapter 11, and Subchapter V (a special type of streamlined Chapter 11 for small businesses).

Each option serves a different purpose. Choosing the right one depends on your goals, your debt load, your assets, and your future plans. Larson & Zirzow’s deep experience with all three, including the lesser-known and under-used Subchapter V, helps business owners make smart choices that protect both their company and their personal interests.

Chapter 7 for Businesses — Orderly Liquidation

When a business is no longer viable and has no realistic path to profitability, Chapter 7 can be the best option. In a Chapter 7 business bankruptcy, the company stops operating (if it hasn’t already), and a court-appointed trustee sells the business’s remaining assets to pay creditors.

Unlike personal Chapter 7, there’s no discharge of debt for the business itself. Instead, the goal is to wind things down fairly and in compliance with the law. For many companies and small businesses, Chapter 7 may be the cleanest path if there’s no reasonable chance of recovery.

For some, winding down under Chapter 7 is also a way to reduce the risk of lingering debts, lawsuits, or disputes between owners and creditors. We guide our clients through this process to protect their interests and minimize headaches, so they can move forward with peace of mind.

Chapter 11 — Reorganize and Stay in Business

If the goal is to save the business rather than close it, Chapter 11 (or Subchapter V for qualifying small businesses) can be the best bankruptcy option. Under Chapter 11, a business can keep operating while restructuring debts, renegotiating leases, shedding burdensome contracts, and creating a plan to pay creditors over time.

Chapter 11 is powerful, but it’s also expensive and complex, which historically made it better suited for large companies with significant assets. For many small businesses, the cost and process of a traditional Chapter 11 case can be too much, which is where Subchapter V comes in.

Subchapter V — A Streamlined Chapter 11 for Small Businesses

Recognizing that traditional Chapter 11 wasn’t practical for smaller companies, Congress created Subchapter V as part of the Small Business Reorganization Act. Subchapter V is essentially a simplified version of Chapter 11 designed specifically for small businesses to reorganize quickly and affordably.

Key benefits of Subchapter V include:

• Lower fees and costs, and fewer procedural hurdles than a traditional Chapter 11
• Owners often keep their equity interests without needing to invest new capital
• A trustee helps facilitate the plan but does not take control of operations
• A faster plan approval process with more flexibility than a traditional Chapter 11
• No creditors’ committee in most cases

For many Las Vegas small businesses, like family-owned restaurants, contractors, franchisors, day care centers, or professional services companies, Subchapter V can mean the difference between closing the doors and building back stronger than ever.

Choosing Between Chapter 7 and Subchapter V

One of the most important decisions a small business owner can make is whether to restructure or wind down. For some companies, the cash flow simply isn’t there to keep going. In those situations, a well-planned Chapter 7 may be best.

But for others, a temporary downturn, pandemic recovery, or sudden debt problem doesn’t mean the underlying business is broken. With the right breathing room and court protection, Subchapter V can give a viable business the chance to renegotiate debts, keep employees working, and continue serving customers for years to come.

Subchapter V also allows for a structured wind-down of a small business that is often more favorable than Chapter 7 in that it can buy more time for customers, clients, and employees to find new sources of services and employment.

Larson & Zirzow has particular expertise in helping small businesses evaluate all options realistically. We don’t push you toward the option that’s easiest or most profitable for us. Instead, we guide you to the path that makes the most sense for you.

Protecting Small Business Owners Personally

Another reason to work with experienced bankruptcy counsel is the personal impact. Many small business owners sign personal guarantees on loans, leases, or lines of credit. Sometimes it makes sense for the business to file for bankruptcy on its own. Other times, the owner may need personal bankruptcy protection as well, especially when personal assets are on the line.

Larson & Zirzow understands how to coordinate business and personal filings when needed, using every tool available to protect your family, your home, and your future.

Bankruptcy Litigation and Creditor Disputes

Bankruptcy for businesses of all sizes can involve more than just filing paperwork. Disputes with creditors, landlords, or business partners can surface during the process. Larson & Zirzow’s deep experience in bankruptcy litigation means you have a firm ready to stand up for you in court, whether it’s defending preference claims, resolving contested debt issues, or fighting motions to lift the automatic stay.

Is Business Bankruptcy Right for You?

If your business is struggling with unmanageable debt, constant creditor pressure, or looming lawsuits, you don’t have to guess at your options. Our job is to help you understand what’s possible, plan the right strategy, and handle the process start to finish so you can protect your employees, your family, and your future.

Why Larson & Zirzow for Business Bankruptcy in Las Vegas?

As a boutique Las Vegas bankruptcy firm, we don’t treat your business like a number. We take the time to understand your company’s unique situation, your goals, and what success looks like for you, whether that means saving the business, winding it down properly, or giving you a fresh start personally.

With a team including a Board-Certified Business Bankruptcy Specialist and extensive Subchapter V experience, we know how to make these powerful tools work for the small businesses that drive Nevada’s economy.

Let’s Find the Right Path Forward

If you’re worried about your company’s future, don’t wait until creditors make the decisions for you. Contact Larson & Zirzow today for a confidential consultation. We’ll walk you through options like Chapter 7, Chapter 11, and Subchapter V, and help you find the right solution for your business, your family, and your peace of mind.