Bankruptcy is governed by federal law and is overseen by judges and trustees in the US Bankruptcy Courts. Gardena residents and business owners can have debts discharged or repay creditors over time in a bankruptcy. Secured debts can also be paid off on more favorable terms in some cases. Debtors with certain large assets are often able to retain them. Call a Gardena bankruptcy attorney at 310-904-6213 about which type of bankruptcy is suited for you.

Chapter 7 can cancel unsecured debt like personal loans, credit card and department store bills and medical bills. Individuals and businesses such as corporations, LLCs and partnerships can file Chapter 7 but individuals do have to meet income requirements that a Gardena bankruptcy attorney can explain.

Chapter 13 is for individuals only though sole proprietors can file as well. A Gardena bankruptcy attorney drafts a repayment plan that can include debts that are non-dischargeable. There are some eligibility requirements as well.

Chapter 11 is a comprehensive and intricate process for businesses and individuals with substantial debt and has high costs in filing, administrative and legal fees. It allows companies to restructure operation, cancel some debt and repay others.

Gardena bankruptcy attorneys handle these 3 common types of bankruptcies:

Chapter 7 Bankruptcy

Individuals and Gardena businesses and corporations can file Chapter 7. Unsecured debt like credit cards, medical and department store bills and personal loans can be discharged. Secured debts are retained but may be re-done on more favorable terms or you can return the collateral with no further obligations. Your Chapter 7 bankruptcy attorney can help determine if this is the right filing for your situation.

If a consumer, a Chapter 7 bankruptcy attorney will see determine your eligibility to file by comparing your income to the state median. If too high, the Chapter 7 bankruptcy attorney will see if your disposable income is not too high.

Your duties in Chapter 7 are to attend a class on debt counseling before filing and a financial management class before discharge. You are to list all your debts, assets and household expenses and disclose certain financial transactions. Your only other obligation is for you and your Chapter 7 bankruptcy attorney to attend a meeting with the trustee and to truthfully answer questions about your petition and assets before an eventual discharge within 90 days in most cases.

Chapter 13 Bankruptcy

Only Gardena consumers and individual business owners can file Chapter 13. You need a steady source of income as this is a wage earner’s plan. Your Chapter 13 bankruptcy lawyer will file a repayment plan for approval by the trustee, which provides for payment to creditors in order of priority over either 3 or 5 years. Unsecured debt repayments are usually minimal and can be discharged at the conclusion of the plan. You do have to qualify but your Chapter 13 bankruptcy lawyer can determine this.

Gardena homeowners can include past due mortgage payments or car loan obligations as well as student debts, alimony and child support payments in the plan. Your Chapter 13 bankruptcy lawyer can explain what debts are nondischargeable but which can be handled in the filing.

If you are a sole proprietor, talk to a Chapter 13 bankruptcy lawyer about how filing can benefit you.

Chapter 11 Bankruptcy

Chapter 11 is costly in terms of filing, administrative costs and attorney fees but it can revive struggling businesses. A Chapter 11 bankruptcy lawyer files a disclosure statement that contains enough information about the business to make an informed judgment about the reorganization. The reorganization plan is prepared by the Chapter 11 bankruptcy lawyer who submits it to creditors for confirmation. The plan provides a strategy for how the claims of creditors, who are put into certain classes, will be paid. The plan is voted on by those creditors who will not be paid full value.

If confirmed, your Gardena bankruptcy lawyer will see that various reports, fees, and documents are timely submitted. The business can continue to operate and with the approval of the court enter into more favorable contracts and leases and break existing ones. Assets can be sold off and certain operations expanded or terminated.

Small businesses can be fast tracked to avoid many of the reporting and fee requirements. Individual debtors will have to pay off all debts under their plan. Discuss with a Gardena bankruptcy lawyer about how Chapter 11 operates in these cases.

Be assured that a Gardena bankruptcy lawyer can handle your case professionally and expeditiously. Call a Gardena bankruptcy lawyer today at 310-904-6213.