Have you ever been critical of someone who had to file bankruptcy? Was it your belief that that person or business lacked discipline in financial affairs? The truth is that the overwhelming majority of people who seek bankruptcy relief do so because of a huge medical bills from a catastrophic illness or injury or because of layoffs when a employer closed its doors or moved elsewhere.

If you are in a similar situation, call a Valley Glen bankruptcy attorney at (888) 754-9877. A Valley Glen bankruptcy attorney will discuss with you the various types of bankruptcy and how it can wipe out certain debt or allow a business to keep operating while repaying its creditors over time. If you fear loss of assets, a Valley Glen bankruptcy attorney can explain how a Chapter 13 allows you to retain all your assets and escape foreclosure or repossession.

A Valley Glen bankruptcy attorney handles the following types of bankruptcy:

Chapter 7 Bankruptcy

When a Valley Glen business is no longer viable and is facing lawsuits over unpaid debts, a Chapter 7 allows the business to liquidate its assets and pay off creditors to a certain degree without any further obligations. If a consumer, a Chapter 7 Bankruptcy Lawyer will confirm your eligibility based on income and liabilities. A Chapter 7 Bankruptcy Lawyer will also match your assets with available exemptions to see if a Chapter 13 might be more appropriate.

Chapter 7 can wipe out debts unsecured by collateral like credit cards, personal loans, payday loans, department store bills and medical bills. Your Chapter 7 Bankruptcy Lawyer will file a petition containing your financial affairs that is reviewed at a meeting with you and your Chapter 7 Bankruptcy Lawyer. In most cases, your Valley Glen bankruptcy lawyer will ensure there are few if any issues with your proceeding.

Your debts will be discharged about 4 to 6 months after filing in most cases.

Chapter 13 Bankruptcy

Chapter 13 is a repayment proceeding for those with a reliable source of income whereby secured creditors and those with priority are paid back over 3 or 5 years. A Chapter 13 Bankruptcy Attorney will prepare the plan for the trustee’s approval.

Valley Glen sole proprietors can file Chapter 13 and include business debt if personally guaranteed. Valley Glen consumers who are ineligible under Chapter 7 or whose assets will likely be surrendered in a straight bankruptcy as confirmed by a Chapter 13 Bankruptcy Attorney may file as well.

Under Chapter 13, you make a single monthly payment to a trustee. The plan can include past due payments for a car loan, mortgage, student loan, alimony or child support. Your Chapter 13 Bankruptcy Attorney can also reduce the value of

secured personal property to its market value.

Unsecured debt like credit card bills are usually discharged at the plan’s conclusion. If you find that the plan is too onerous because of some subsequent event, your Chapter 13 Bankruptcy Attorney may be able to revise it.

Chapter 11 Bankruptcy

If your Valley Glen business is struggling, a Chapter 11 Bankruptcy Lawyer may advise Chapter 11. This is a complex repayment proceeding that includes a reorganization plan filed by your Chapter 11 Bankruptcy Lawyer that is voted on by certain creditors who will not be paid in full along with equity holders. Secured creditors are to paid at least to the value of their collateral.

Once confirmed, the business continues its operations as usual with no trustee oversight unless fraud alleged. Most restructuring that occurs includes downsizing to free up assets. Other major business decisions such as breaking and re-negotiating new contracts, leases and licenses, and payment to professionals including Valley Glen bankruptcy lawyers require court approval.

Businesses in Chapter 11 often have to convert to Chapter 11 or end up merging with other businesses though numerous others do emerge successfully.

Consult a Valley Glen bankruptcy lawyer at (888) 754-9877 about the bankruptcy process and what it can do for your debt problems.