Despite good faith efforts to control spending, follow a budget and to use sound financial advice, Los Feliz consumers and business owners may still find themselves in deep financial debt. Most debt is caused by unforeseen events such as a serious illness or accident or from an unexpected financial occurrence. In such cases, you can consult with a Los Feliz bankruptcy attorney to see if bankruptcy could offer a practical solution.

Bankruptcy can offer options that can wipe out certain debt, dissolve a business in an orderly way or repay creditors while restructuring debt that will allow a business to continue operating and individuals to retain all their assets. A Los Feliz bankruptcy attorney can counsel you on the different types of bankruptcy.

Individuals do have to meet certain income criteria that a Los Feliz bankruptcy attorney can verify to file Chapter 7. If proceeding under Chapter 13, debts cannot exceed certain amounts for secured and unsecured debt. If your business is considering Chapter 11, a Los Feliz bankruptcy attorney should counsel you on its requirements, formalities and complexities.

Chapter 7 Bankruptcy

Both Los Feliz individuals and businesses can file Chapter 7, a liquidation process. Debts can be discharged but personal assets are at risk of being surrendered unless a Chapter 7 lawyer can confirm they are exempt under available exemption amounts. A Chapter 7 lawyer has to confirm that an individual debtor meets income criteria to qualify for filing.

If eligible to file, consumers can cancel debt like credit cards, medical bills, department store charges, payday loans, personal loans and promissory notes. A Chapter 7 lawyer will advise you on what debts are non-dischargeable. The Chapter 7 petition is filed by a Chapter 7 lawyer and details the consumer or business’ financial affairs. It is reviewed by a trustee at a meeting attended by the debtor and Los Feliz bankruptcy lawyer.

You can expect a final discharge about 4 months after filing.

Chapter 13 Bankruptcy

Chapter 13 is an alternate form of bankruptcy that individual debtors who are not eligible to file under Chapter 7 can elect. A Chapter 13 Bankruptcy Attorney may also advise you or sole proprietor that it is more beneficial than a straight bankruptcy as it allows debtors to retain their assets.

A Chapter 13 Bankruptcy Attorney submits a plan where you repay primarily secured creditors and those with priority over 3 years or 5 years in some cases. The Chapter 13 Bankruptcy Attorney can adjust secured debt within the plan that can also include arrearages in mortgage, auto, student loan, alimony or child support payments.

A Chapter 13 Bankruptcy Attorney can also revise a plan if a debtor has difficulties making the single monthly payment to the trustee.

Chapter 11 Bankruptcy

Los Feliz businesses that want to keep operating but are experiencing overwhelming debt issues can consider Chapter 11 after consulting with a Los Feliz bankruptcy lawyer. A Chapter 11 Bankruptcy Lawyer submits a reorganization plan that classifies creditors and how they will be repaid, often at reduced amounts. These creditors vote on whether to confirm the plan if they feel it is feasible, fair and in their best interests.

Debtor businesses are able to maintain control over their assets and normal operations but most companies seek to reorganize or re-fashion their business. Any major business decisions including selling of major assets or equipment, buying another company, expanding or shrinking operations or breaking existing contracts must be court-approved.

The Chapter 11 Bankruptcy Lawyer ensures that the business complies with required filing and reporting obligations and mandated costs. If a small business or individual that wishes to file, a Los Feliz bankruptcy lawyer can offer counsel on how it operates for them.

Call a Los Feliz bankruptcy lawyer at (888) 754-9877 if you are considering bankruptcy.