Do you know what bankruptcy is and the various types? You may have heard about Chapter 7 and that it can get rid of debt, but did you know you have to qualify to file? Or, that it does not help you if you are behind on your mortgage or child support or you have a second home? Do you know what Chapter 13 is?

These are just some of the questions Van Nuys residents need to know if facing financial difficulties. You can call a Van Nuys bankruptcy attorney at (888) 754-9877 to get answers to these and other questions.

Chapter 7 can get rid of unsecured debt but have a Van Nuys bankruptcy attorney review your assets, income and liabilities. Chapter 13 is a repayment process than can save your home from foreclosure and allow you to keep all of your assets while you repay creditors over time.

For Van Nuys businesses that want to stay operational, there is Chapter 11 reorganization. This is a costly and prolonged process that your Van Nuys bankruptcy attorney will explain to you in detail before you decide to file.

Bankruptcy has helped millions of individuals and businesses but get the full story by scheduling a consultation with a Van Nuys bankruptcy attorney.

Chapter 7 Bankruptcy

Van Nuys onsumers must be eligible to file for Chapter 7, which can discharge unsecured debt like credit cards, department store and medical bills. A Chapter 7 Bankruptcy Lawyer will compare your income to the state median for your household size. If too high, the Chapter 7 Bankruptcy Lawyer can look at your disposable income that must be below a standard sum.

If eligible, take a debt counseling class before your Chapter 7 Bankruptcy Lawyer prepares a petition listing debts, liabilities and other financial information. This will be reviewed by the trustee at a meeting you attend with your Chapter 7 Bankruptcy Lawyer. Your Van Nuys bankruptcy lawyer can assure your assets are exempt or will have advised you otherwise.

A discharge of your unsecured liabilities is usually granted about 90 days later. Talk to your Van Nuys bankruptcy lawyer about your options regarding secured debt.

Chapter 13 Bankruptcy

Chapter 7 is not for everyone Van Nuys debtor as your Chapter 13 Bankruptcy Attorney will explain. Your circumstances may call for Chapter 13, which is a wage earner’s plan. Your Chapter 13 Bankruptcy Attorney prepares a plan to repay your creditors over 3 or 5 years that includes arrearages in mortgage, auto, student loan, taxes, alimony and child support payments. Secured creditors with priority are paid first. A single monthly payment is made to the trustee who distributes it accordingly.

Most secured personal property can be reduced to market value and included in the plan. If you have issues affecting your payments, your Chapter 13 Bankruptcy Attorney may be able to make a revision. Talk to a Chapter 13 to see how this type of bankruptcy may be more appropriate for your needs.

Chapter 11 Bankruptcy

If your Van Nuys business is an LLC, is incorporated or a partnership, a Chapter 11 could offer relief from collection activities and lawsuits. Your Chapter 11 Bankruptcy Lawyer prepares a disclosure statement reassuring creditors about the business’ future and then submits a reorganization plan for confirmation by certain impaired creditors, or those whose debts will not be paid in full.

The plan is considered for its feasibility and if it is fair and equitable, was filed in good faith and is beneficial to the creditors. Once confirmed, the business continues its usual business operations but any major decisions regarding restructuring, sale of assets and entering into new contracts and transactions must be court approved. Your Chapter 11 Bankruptcy Lawyer will file periodic progress reports with the court.

Chapter 11 can also be used by smaller businesses and individual debtors ineligible under Chapter 7 and 13. Consult a Van Nuys bankruptcy lawyer about this very intricate proceeding.

Call a Van Nuys bankruptcy lawyer at (888) 754-9877 if you want to learn more about bankruptcy and if it can help your situation