Declaring or filing bankruptcy is not the end of the world. Many successful businesses and individuals have filed including General Motors and our current president. While you may not become president, bankruptcy can be a new beginning for you. Talk to a Pasadena bankruptcy attorney at (888) 754-9877 if you are thinking of bankruptcy.

There are 3 main types of bankruptcy for consumers and businesses: Chapter 7, 11 and 13 with differing eligibility criteria and outcomes. In a Chapter 7, consumers and some businesses can be rid of unsecured and business debt and retain most if not all of their personal assets. A Pasadena bankruptcy attorney may advise that you consider filing after a consultation.

A Chapter 13 requires individuals to repay creditors over time but all assets may be retained. This filing can save a home from foreclosure, strip liens like second mortgages, and give debtors who have fallen behind in student loans, car payments, child support and alimony time to make up the arrearages. Talk to a Pasadena bankruptcy lawyer to see if you can benefit.

Chapter 11 is not just for General Motors or a future president. Corporations, LLCs, partnerships as well as small businesses and some individual debtors can reorganize their operations while repaying creditors and reducing the value of certain obligations.

If you think bankruptcy might be feasible, call a Pasadena bankruptcy lawyer.

Chapter 7 Bankruptcy

Pasadena consumers whose income makes them eligible to file can discharge credit cards, department store bills, medical bills and personal loans in a Chapter 7 with the help of a Chapter 7 Bankruptcy Lawyer. After completing a debt counseling class arranged by your Chapter 7 Bankruptcy Lawyer, provide a list of your monthly household expenses, value of assets, debts and any executory contracts. You and your Chapter 7 Bankruptcy Lawyer will then meet with the bankruptcy trustee who will see if you have any non-exempt assets worth pursuing.

Corporations and most businesses that file cease operating and surrender assets to the trustee for sale and the proceeds distributed to creditors. For individual debtors, most retain all their assets. Consult a Chapter 7 Bankruptcy Lawyer if you are thinking of filing.

Chapter 13 Bankruptcy

Pasadena consumers in danger of losing a home or car, who are behind in a student loan or child support can file Chapter 13 if advised by a Chapter 13 Bankruptcy Attorney. Debtors who cannot file Chapter 7 or have substantial non-exempt assets may file as well but check with a Chapter 13 Bankruptcy Attorney first. If a Chapter 13 Bankruptcy Attorney deems you eligible, he or she files a repayment plan that includes all your debts to be repaid over 3 or 5 years. Creditors are paid in order of priority. Your Chapter 13 Bankruptcy Attorney can explain how this operates.

Secured debt can be reduced to market value under the plan. At the plan’s conclusion, unsecured debt not paid off will be discharged. If you are a sole proprietor and guaranteed a business debt, consult with a Pasadena bankruptcy lawyer about your options.

Chapter 11 Bankruptcy

A Chapter 11 Bankruptcy Lawyer can ascertain if your business is a viable candidate for Chapter 11. This is a very involved process for mostly corporations, LLCs and partnerships trying to stay in business. A Chapter 11 Bankruptcy Lawyer submits a reorganization plan for certain creditors to consider for confirmation that must meet particular standards and be feasible fair, prepared in good faith and of benefit to them. In some cases, creditor committees can submit competing plans.

Once a plan is confirmed, the business continues operating and repays creditors with some having their debts de-valued. With the approval of the court, existing contracts can be nullified and new ones entered into with more favorable terms while assets may be sold off and some operations stripped or expanded.

Small businesses can file Chapter 11 as can individual debtors whose debts are too large for Chapter 13 or have income too high for Chapter 7. Talk to a Pasadena bankruptcy lawyer for advice about Chapter 11.

Call a Pasadena bankruptcy lawyer at (888) 754-9877 about the different options and how you or your business can benefit.