Bankruptcy can be a reasonable option for people and businesses seeking relief from substantial debt that is stifling their lives or businesses. While most people have debt to some degree, you do not want it to become unmanageable. If your debt has become a problem, call a Santa Fe Springs bankruptcy attorney at (888) 754-9877.

The main type of bankruptcy is Chapter 7 where individuals and businesses can have certain debts discharged but may risk loss of assets unless, as a consumer, your Santa Fe Springs bankruptcy attorney finds that you are entitled to certain exemptions. Individuals also have to qualify to file that a Santa Fe Springs bankruptcy attorney can verify.

The other options are repayment proceedings under Chapter 13 for individuals and Santa Fe Springs sole proprietors, and Chapter 11 for other businesses. These proceedings are for individuals ineligible to file under Chapter 7 or whose assets are not exempt, and for businesses who wish to continue operating while reorganizing their operations. Any bankruptcy filing should be handled by a Santa Fe Springs bankruptcy attorney to avoid potential issues.

Call a Santa Fe Springs bankruptcy attorney today to discuss which bankruptcy option can serve your debt situation.

Chapter 7 Bankruptcy

Santa Fe Springs businesses may dissolve their operations under Chapter 7 and have their assets sold to pay off creditors. Similarly, a consumer whose eligibility to file has been confirmed by a Chapter 7 Bankruptcy Lawyer can have unsecured debt such as credit cards, medical bills, repossession deficiencies, payday loans, tax penalties and unpaid taxes if old enough, department store bills and unpaid rent discharged. Your Chapter 7 Bankruptcy Lawyer can advise you on what is a non-dischargeable debt.

The proceedings are straight-forward and your Chapter 7 Bankruptcy Lawyer can tell you what your obligations are before and after filing. Your only appearance is with your Chapter 7 Bankruptcy Lawyer at a meeting with a trustee to review your petition outlining your financial affairs that was prepared by your Santa Fe Springs bankruptcy lawyer.

Most cases are discharged within 4 months after filing.

Chapter 13 Bankruptcy

A Chapter 13 Bankruptcy Attorney may advise you that Chapter 13 is your only option or is the most beneficial. If you elect to file, a Chapter 13 Bankruptcy Attorney prepares a repayment plan where secured creditors and others with priority are paid first. Unsecured creditors are to be paid only what they would have received under Chapter 7, if anything.

Sole proprietors can include business debt if it was personally guaranteed. Debtors submit a single monthly payment to the trustee over a 3 or 5 year period. Your Chapter 13 Bankruptcy Attorney can also reduce the value of most secured property to its market value.

Chapter 13 can rescue Santa Fe Springs homeowners from foreclosure. Arrearages in secured loans such as a mortgage or auto can be included in the plan. Your Chapter 13 Bankruptcy Attorney can also strip a junior mortgage and have that obligation discharged.

Chapter 11 Bankruptcy

When a Santa Fe Springs business has difficulty paying its debts, it can turn to a Chapter 11 Bankruptcy Lawyer. Under Chapter 11, a business offers a plan drafted by its Chapter 11 Bankruptcy Lawyer that puts creditors into classes generally based on how much of their debt will be paid over time. The reorganization plan is voted on by certain classes and confirmed or not.

If confirmed, the company may continue its usual operations although its restructuring plans that involves any major business decisions must be approved by the court. Your Santa Fe Springs bankruptcy lawyer keeps the court advised on the business’ progress.

Individuals with substantial debt can also file Chapter 11 if so advised by a Santa Fe Springs bankruptcy lawyer.

Call a Santa Fe Springs bankruptcy lawyer at (888) 754-9877. to discuss bankruptcy and if it can be the solution to relieving you of unrelenting debt.