Many southern California residents have visited and enjoyed Tia Juana's Long Bar & Grill in Irvine. Earlier this month, the historic restaurant closed its doors for the last time after filing for bankruptcy liquidation. Tia Juana's had been operating in this location since 1988 and is rumored to have been located in one of the oldest buildings in the area.

The owner of the iconic bar and grill said that a poor economy and a dispute with the landlord led to the filing for bankruptcy. According to the owner, the landlord wanted to double the current rent which played a major role in the decision to file for bankruptcy. Tia Juana's filed for Chapter 7 bankruptcy liquidation back in October. It listed more than $17,000 in assets and more than $495,000 in liabilities, according to court records. On Dec. 9, the trustee who was handling the bankruptcy filing submitted a motion to abandon the bankruptcy estate's interest in any remaining assets.

This is one example of what can happen to a California business when debt solutions are not available soon enough. It is unfortunate, but this case is not all that uncommon; many businesses need debt relief in order to stay afloat in this stagnant economy. The good news is there are options available for keeping your business open, in many cases. The trick is learning what they are early enough to put them in place. To learn what options may work best for any particular business, consulting with a legal professional experienced in commercial and bankruptcy law may be the best first step.

Source: Orange County Register, "Well-known bar, grill files for bankruptcy, closes," Greg Hardesty, Dec. 13, 2011