Bankruptcy can be an emotionally draining experience. You and your family may fear what bankruptcy will do. The Patel Law Group of Santa Ana, California, understands the fears and pressures surrounding a pending bankruptcy and is here to help you through a troubling experience.
Let us help you understand if Chapter 7 bankruptcy is right for you. It is often called a "straight bankruptcy," or "liquidation bankruptcy," and is the most common chapter. Approximately two-thirds of all bankruptcies filed each year are Chapter 7s.
In a Chapter 7 bankruptcy proceeding, you, the debtor, seek a discharge, which is a document mailed to you by the clerk of the bankruptcy court toward the end of the case. The discharge is the document, which essentially states that you are no longer legally responsible for repaying your creditors.
You will pay a price for the privilege of receiving a Chapter 7 discharge. There are three primary components to every Chapter 7 bankruptcy proceeding including assets, liabilities, and income. We'll help you understand each one.
You may benefit from a Chapter 13 bankruptcy and The Patel Law Group will advise you if this is best for you.
A Chapter 13 bankruptcy is often referred to as the "individual debt adjustment" chapter. It is the chapter selected in approximately one-third of all the bankruptcies filed around the country each year.
Once again you, the debtor, seek a discharge, which is the document mailed to you and all creditors by the clerk of the bankruptcy court toward the end of the case, advising that you are no longer legally responsible for repaying discharged debts.
In a Chapter 13 bankruptcy proceeding, you plan to repay in full or part of the amount owed to creditors over time. You declare that your household generates a certain sum each month and that your household spends a certain amount each month on rent or mortgage, car payments, utilities, food, and the like. You then confirm that you may have a small net amount left over each month to offer as repayment to creditors.
Are you a small business owner in need of bankruptcy advice and protection? Chapter 11 bankruptcy is primarily a reorganization for businesses such as corporations and partnerships, or for individuals with large debts and assets who do not meet the strict asset/debt limitations of Chapter 13.
You may also benefit from the greater flexibility and options that Chapter 11 offers. It can be extremely useful, even in lower debt cases and is often very helpful in real estate cases where you are trying to find ways to catch up on past due payments.
Let us help you buy some time, when selling a piece of property that has equity, or when dealing with delinquent taxes. Chapter 11 will benefit you in other scenarios where you need time to catch up on payments but want to keep your business running.
If you would like more information, or would like to discuss your situation with a bankruptcy attorney, please contact The Patel Law Group today.