Don’t think that bankruptcy is just for addicted gamblers or free spenders who max out credit cards. The great majority of persons who seek bankruptcy protection are hard workers unable to pay medical bills because of sudden catastrophic illness or are struggling to pay debts because a factory moved overseas. South Pasadena residents and business owners who have accumulated too much debt can call a South Pasadena bankruptcy attorney at (888) 754-9877 and see if bankruptcy can restore some sanity to their lives.

A South Pasadena bankruptcy attorney will advise you on the 3 main types of bankruptcy–Chapter 7, Chapter 13 and Chapter 11. Consumers can have certain types of debt discharged and retain most or all of their property and assets in Chapter 7 or repay creditors over time if they risk loss of certain assets under Chapter 13.

Businesses can liquidate their assets and proceeds distributed to creditors in a orderly manner or seek reorganization under a Chapter 11 under the guidance of a skilled South Pasadena bankruptcy attorney. Consult a South Pasadena bankruptcy attorney if you are thinking of bankruptcy.

Chapter 7 Bankruptcy

Creditors can be relentless but filing bankruptcy forces creditors to cease all collection activity. In a Chapter 7, a Chapter 7 Bankruptcy Lawyer confirms that your income does not exceed the state median or that your disposable income is not too high before you file. If you have assets that are not protected, your South Pasadena bankruptcy attorney will advise you of other options.

After completing a debt education class and providing financial documents, your Chapter 7 Bankruptcy Lawyer files a petition detailing your financial affairs and activities over the past 1 to 2 years. South Pasadena businesses seeking to dissolve do not have to meet an eligibility test.

You do have to attend a meeting with the trustee accompanied by your Chapter 7 Bankruptcy Lawyer who reviews your petition. Your Chapter 7 Bankruptcy Lawyer will handle all issues that may arise.

When the proceedings conclude in another few months, credit card, medical bills, department store bills and other unsecured debt are canceled.

Chapter 13 Bankruptcy

A Chapter 13 Bankruptcy Attorney may advise you that Chapter 7 is either unavailable or will cause you to lose valuable assets. Under Chapter 13, your Chapter 13 Bankruptcy Attorney prepares a repayment plan that includes all your liabilities and arrearages in secured loans such as mortgage and auto loans. It can also include student loan, tax and child support arrearages.

South Pasadena sole proprietors can file and include business debt in the plan if they are personally liable while continuing to run their businesses. A Chapter 13 Bankruptcy Attorney can counsel you on how your business can benefit.

Unsecured debt like credit cards are paid last if at all. Ask your Chapter 13 Bankruptcy Attorney if this is a feasible plan for your situation.

Chapter 11 Bankruptcy

Chapter 11 is also a repayment plan filing but for businesses other than sole proprietorships. It is an extremely complex procedure that a seasoned Chapter 11 Bankruptcy Lawyer should handle.

Creditors can also force businesses into Chapter 11. Once the petition is filed, a Chapter 11 Bankruptcy Lawyer initially files a disclosure statement that provides information to creditors and then a reorganization plan for confirmation by certain creditors.

The plan is essentially a contract with the creditors and provides for how they are to be paid and how the business expects to achieve solvency through restructuring. Once a plan is in place, the business continues its usual operations but major decisions such as streamlining, modifying existing contracts, leases and licenses and finding new financing require court approval.

Smaller businesses can avoid some of the notice and filing requirements that a South Pasadena bankruptcy lawyer normally handles in a typical case but is under closer court supervision. Individuals with substantial debt can file Chapter 11 as well.

Call a South Pasadena bankruptcy lawyer at (888) 754-9877 for questions on bankruptcy and to find an attorney you can trust.