When a financial crisis hits or you begin to realize that your business is in deeper trouble than you want to admit, bankruptcy may be on your mind. Realize, however, that filing bankruptcy is not an admission of defeat but a means to get your life or business back on track or to start over. Torrance consumers and business owners can get more information by calling a Torrance bankruptcy attorney at 310-904-6182.

The 3 most common types of bankruptcy are Chapters 7, 13 and 11. A Chapter 7 allows Torrance residents with mostly consumer debt to discharge unsecured debt. You do have to meet eligibility requirements for this type and any other type so consult with a Torrance bankruptcy attorney first.

Chapter 13 permits sole proprietorships to remain in business. If you do not qualify for or have property you would lose in a Chapter 7 or are in fear of home foreclosure, speak to a Torrance bankruptcy attorney.

Corporations and partnerships in trouble can seek protection under Chapter 11, a reorganization process that can save your business in some cases. This is a highly complex procedure that a Torrance bankruptcy attorney can review with you.

Bankruptcy requires that you meet certain requirements in terms of income, business status, debt amount and past bankruptcy filings. Consult with a Torrance bankruptcy lawyer if you think bankruptcy might benefit you.

Chapter 7 Bankruptcy

Torrance residents struggling with credit card debt, unpaid medical bills and fearing deficiency payments if they default on certain loans may consider Chapter 7. A Chapter 7 bankruptcy attorney will first see if your income for your household size is below the state median or if your disposable income is below a certain limit. If you qualify, take a short debt education class before filing.

Your Chapter 7 bankruptcy attorney will prepare a petition with your debts, value of assets, household expenses and a list of existing contract and leases. Particular transactions involving transfers of property over the past 1 to 2 years must be disclosed.

You and your Chapter 7 bankruptcy attorney will meet with the trustee in your case to review your petition but no other meetings or court appearances are generally necessary. Discharge of your unsecured consumer debt comes about 90 days after your meeting. Business debt can be discharged in many cases as well.

Talk to a Chapter 7 bankruptcy attorney about how Chapter 7 could help.

Chapter 13 Bankruptcy

Sole proprietorships in Torrance and debtors who risk losing too many assets in a Chapter 7 or are ineligible to file Chapter 7 may consider Chapter 13. A Chapter 13 bankruptcy lawyer prepares a repayment plan to pay creditors based on their priority status over a 3 or 5 year period. You do need a steady stream of income and have enough disposable income. Your Chapter 13 bankruptcy lawyer can determine if you qualify.

A plan can include arrearages for home mortgages, car loans, child support and alimony and even taxes so as to avoid incurring substantial penalties or default. Discuss this with a Chapter 13 bankruptcy lawyer.

If you have huge debt, your Chapter 13 bankruptcy lawyer can use strategies to get you under the debt limits. Consult a Torrance bankruptcy lawyer to see if Chapter 13 can work for your debt situation.

Chapter 11 Bankruptcy

If you are a partnership, LLC or corporation in need of help, talk to a Chapter 11 bankruptcy attorney in Torrance. A Chapter 11 bankruptcy attorney will analyze your business operations, file a disclosure statement and then a reorganization plan within 4 months or up to 18 months if needed. Creditors and equity holders need to confirm the plan or may submit their own.

If confirmed, the business as debtor-in-possession remains operating but may with approval of the bankruptcy court break leases and contracts and negotiate new leases, licensing agreements and contracts. Assets may be sold off, operations expanded or closed and new investments sought. Some businesses are forced into Chapter 7, merge with others or are sold. Others do succeed and emerge as solvent once again.

Small Torrance businesses and individuals with substantial debt can file Chapter 11. A Torrance bankruptcy lawyer can fast track smaller entities and streamline the Chapter 11 process.

Bankruptcy can be a feasible solution for many debtors. Call a Torrance bankruptcy lawyer at 310-904-6182 today.