Chapter 7 Bankruptcy Attorney
Chapter 7 can be filed as an individual with “consumer Chapter 7 bankruptcy” or as “business Chapter 7 bankruptcy”, and tends to last 3-6 months. In Chapter 7 bankruptcy, some property may be liquidated to pay off debts, but often much of the property will be exempt, especially items such as clothing, cars, household furnishings, etc. A benefit of this type of bankruptcy is that most or all unsecured debt is erased, often including instances of credit card or medical debt. It is important to point out that not all types of debt can be erased, such as child and spouse support or most types of tax debt. If money is owed on a secured debt, such as a car loan where the car is pledged as a guarantee of payment, several options exist. The creditor can repossess the property, payments can continue under the original contract, or a lump sum can be paid to the creditor equal to the current replacement value of the property. In some cases, the secured debt can even be eliminated under the bankruptcy.
Bankruptcy Attorney Ventura
Bankruptcy is a process by which individuals or businesses can repay or eliminate some or all of their debt under the supervision of the Federal Bankruptcy Court. There are two major categories of bankruptcy: liquidation and reorganization. In liquidation, the person or company sells (liquidates) property to pay back debt. Some property may be protected (exempt) from liquidation, depending on the situation. On the other hand, reorganization is an attempt to extend the life of a company. It includes the restatement of assets and liabilities and a restructuring of the payment system to help the company pay its creditors more reliably. There are several types of bankruptcy, denoted by chapters, and each covers different situations and follows its own specific regulations. Here we’ll go into detail about Chapters 7, 11, and 13.
In Chapter 7 bankruptcy, some property may be liquidated to pay off debts, but often much of the property will be exempt
Chapter 11 or “reorganization bankruptcy” is mostly filed by struggling companies to help restructure their business.
Chapter 13, also known as “wage earner bankruptcy”, requires a reliable source of income that can be used to pay off some of the debt.