Bankruptcy is filed by 800,000 to 900,000 persons and businesses yearly in the US. Any North Hollywood bankruptcy attorney will tell you that most filers are hard-working consumers and business owners who have experienced an unforeseen illness, accident or other circumstance.

Call a North Hollywood bankruptcy attorney at (888) 754-9877 about the bankruptcy process. North Hollywood bankruptcy attorneys handle Chapter 7, 11 and 13 for North Hollywood consumers and business owners experiencing financial distress.

Chapter 7 can help businesses liquidate their operations and avoid the chaos that can accompany any dissolution. It can wipe out personal obligations on consumer and some business debt and allow North Hollywood consumer debtors to walk away from liabilities without loss of assets. If not eligible to file a Chapter 7, a North Hollywood bankruptcy attorney can advise you on Chapter 13, a repayment plan that repays creditors over time and can rescue North Hollywood homeowners from foreclosure.

Chapter 11 is a very involved process that LLCs, corporations and partnerships use to reorganize while repaying creditors. Talk to a North Hollywood bankruptcy lawyer about whether your business is a candidate.

Chapter 7 Bankruptcy

If your income does not exceed the state median or your disposable income is not too high, a Chapter 7 Bankruptcy Lawyer can fully advise you on filing requirements and what to expect. Once you take a credit counseling class arranged by your Chapter 7 Bankruptcy Lawyer, you must submit certain documents and fill in schedules listing creditors, assets, monthly expenses and existing leases and contracts. Do not give away certain assets to relatives or close business partners to avoid losing them. Your Chapter 7 Bankruptcy Lawyer will examine these transactions if done.

Once you file, an automatic stay prevents any further collection activity including civil lawsuits or asset seizures. You and your Chapter 7 Bankruptcy Lawyer will then be scheduled to meet the trustee in your case to see if any non-exempt assets are worth pursuing.

Most businesses who file must dissolve and surrender assets but those without many assets may remain in business and discharge unsecured obligations. Upon discharge, your credit card, medical and department store bills and personal loans are canceled.

Chapter 13 Bankruptcy

Should you be ineligible to file under or may jeopardize loss of non-exempt assets in Chapter 7, a Chapter 13 Bankruptcy Attorney can advise you on the benefits of Chapter 13. A Chapter 13 Bankruptcy Attorney submits a repayment plan over a 3 or 5 year period to the trustee for approval. Under the plan, you pay creditors in order of priority such as mortgage holders, employees who are owed wages and payments due on car loans and court-ordered support. Talk to a Chapter 13 Bankruptcy Attorney about creditor priority payments.

Unsecured debts not paid off are discharged at the plan’s conclusion. Your Chapter 13 Bankruptcy Attorney can also help if your plan needs revision before its conclusion.

Chapter 11 Bankruptcy

If considering Chapter 11 for your LLC, corporation, partnership or other business entity, consult a North Hollywood bankruptcy lawyer to see if it can help. This is a reorganization procedure that repays creditors over time. A Chapter 11 Bankruptcy Lawyer files a reorganization plan after submitting a disclosure statement for creditors on what strategies the business will use to regain viability.

The reorganization plan submitted by the Chapter 11 Bankruptcy Lawyer places creditors in classes. Impaired creditors and equity holders vote to confirm if they feel the plan is feasible, filed in good faith, is fair and equitable and in its best interests. Once confirmed, the business continues but can only undergo major restructuring if the court approves the measures.

Small businesses are under greater scrutiny but can bypass some of the formalities and emerge from the filing much quicker. High net worth individuals with very large debt may benefit from filing as well.

Bankruptcy is not a total solution for most debtors but by getting rid of overwhelming debt or delaying payments in an orderly fashion, you can get back to a normal life. Call a North Hollywood bankruptcy lawyer at (888) 754-9877.