The majority of bankruptcies in the US are filed by people forced into overwhelming debt by a medical catastrophe or the loss of a job. Many new businesses do not survive and are forced to file so as to relieve its owners of further obligations after assets are sold off in a straight bankruptcy. However, an individual or a business can also repay creditors over time and save assets for another day under Chapter 13 or Chapter 11. Call a Toluca Lake bankruptcy attorney at (888) 754-9877 about how bankruptcy might be the solution you need.

A Toluca Lake bankruptcy attorney can advise you on Chapter 7, Chapter 11 or Chapter 13. Although some people file bankruptcy on their own, there are pitfalls and issues that can arise that can jeopardize your case unless you have a knowledgeable Toluca Lake bankruptcy attorney handling your case.

If you are considering bankruptcy, consult a Toluca Lake bankruptcy attorney for honest and credible advice about the various bankruptcy proceedings.

Chapter 7 Bankruptcy

Toluca Lake consumers and business owners can file Chapter 7 to erase certain debt and provide for an orderly sale of assets in some cases. Consumers have to qualify to file that a Chapter 7 Bankruptcy Lawyer can verify. You also have to complete a debt counseling class arranged by your Chapter 7 Bankruptcy Lawyer before filing.

Upon filing, an automatic stay puts a stop to all creditor activity including phone calls. A Chapter 7 Bankruptcy Lawyer files a petition with your financial affairs that is later reviewed by a trustee at a 341 Meeting where you and your Chapter 7 Bankruptcy Lawyer meet the trustee and answer queries about your affairs. Your Toluca Lake bankruptcy lawyer will have already prepared you for the meeting.

You can then expect your unsecured debts such as medical bills, department store charges, personal loans, credit cards and payday loans to be discharged about 90 days after the meeting.

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Chapter 13 Bankruptcy

Not all Toluca Lake consumers may qualify to file Chapter 7 so a Chapter 13 Bankruptcy Attorney can suggest Chapter 13. This is a repayment proceeding that can benefit Toluca Lake homeowners facing foreclosure or an auto repossession. Your Chapter 13 Bankruptcy Attorney files your plan for the trustee’s approval that includes all your liabilities, including past due payments for a mortgage, car, alimony or child support.

Under the plan, you will make a single monthly payment to the trustee who distributes it to secured and other priority creditors over 3 or 5 years. If some unforeseen event makes payment difficult, your Chapter 13 Bankruptcy Attorney may be able to revise it. Other benefits include your Chapter 13 Bankruptcy Attorney reducing most secured debt to market value under the plan and seeing unsecured debt wiped out when the plan is concluded.

Chapter 11 Bankruptcy

A Toluca Lake business can file for reorganization under Chapter 11 that allows it to continue operating while restructuring its operations in an effort to achieve solvency. Creditors are paid back over time though some are not paid in full.

A Chapter 11 Bankruptcy Lawyer will assess your business before filing a disclosure statement, This is to give creditors sufficient information about the business and whether to confirm or reject the reorganization plan that your Chapter 11 Bankruptcy Lawyer files for their consideration.

Plans are evaluated bases on feasibility, good faith in filing, fairness and if beneficial to the creditors who vote in its confirmation. If confirmed, then its reorganization strategies that may include hiring specialists, revamping operations, selling assets and receiving financing must be court approved.

Individuals with significant debt who cannot file under Chapter 7 or 13 can file as well with the assistance of a Toluca Lake bankruptcy lawyer.

Call a Toluca Lake bankruptcy lawyer at (888) 754-9877 for advice on whether bankruptcy is the solution for your debt issues.