Garden Grove Bankruptcy Attorney

Bankruptcy is often seen as an option of last resort but consumers and businesses have used bankruptcy when unforeseen events have left them in dire financial straits or a poor business decision or direction doomed their operations. Many times, the bankruptcy process has relieved debtors of unmanageable debt and allowed them to start anew, often with successful results. If you live or have a business in Garden Grove and are struggling with debt, call a Garden Grove bankruptcy attorney at (888) 754-9877.

A Garden Grove bankruptcy attorney will advise you on the 3 most common types of bankruptcy. Chapter 7 is a liquidation process where a trustee sells the debtor’s nonexempt assets to pay off creditors though the bankruptcy code allows consumers to retain exempt assets. Also, consumers have to qualify to file if their income and liabilities meet certain criteria as confirmed by a Garden Grove bankruptcy attorney.

Chapter 13 is a repayment plan filed by a Garden Grove bankruptcy attorney that pays back creditors over a period of years and can rescue a homeowner from foreclosure. Under Chapter 11, a business that does not want to dissolve can file for an adjustment of its debts and reorganize.

A Garden Grove bankruptcy lawyer represents consumers and businesses in all 3 of these types of filings.

Chapter 7 Bankruptcy

Generally, consumers and Garden Grove businesses that file Chapter 7 can discharge business debt and most unsecured debt. As a consumer, your Chapter 7 Bankruptcy Lawyer will match your income with the state median or you have to pass a “means” test that the Chapter 7 Bankruptcy Lawyer will assess so you can file. Non-exempt assets can be sold off by the trustee though personal assets can be exempt if they match available exemption amounts that a Chapter 7 Bankruptcy Lawyer will review.

Garden Grove consumers also have certain obligations to meet before and after filing that a Chapter 7 Bankruptcy Lawyer will ensure they meet.

Under Chapter 7, you can generally discharge or cancel unsecured debt such as credit card charges, medical bills, department store bills, personal loans, promissory notes, business debt, payday loans and repossession deficiencies among others.

Chapter 13 Bankruptcy

A Chapter 13 Bankruptcy Attorney may advise you that Chapter 7 is not an option for you or is not beneficial. However, with the assistance of a Chapter 13 Bankruptcy Attorney, you can file Chapter 13, which is a repayment plan that adjusts debt. It is especially helpful in that it avoids home foreclosure or other repossession and allows you to pay off these arrearages over 3 or 5 years. A Chapter 13 Bankruptcy Attorney can also reschedule secured debt and extend payment over the life of the plan, saving you money.

Garden Grove sole proprietors can file Chapter 13 so long as the individual’s secured and unsecured debts are below a certain sum for each category. Debtors also have certain obligations to meet before and after filing that a Garden Grove bankruptcy lawyer can explain.

Chapter 11 Bankruptcy

Chapter 11 begins with the filing of either a voluntary petition or an involuntary one filed by creditors who meet certain requirements. A Chapter 11 Bankruptcy Lawyer will usually file schedules of the business’ financial affairs followed by a disclosure statement and plan of reorganization.

Creditors whose agreements are to be modified under the plan vote to confirm or reject the plan. If confirmed, the debtor company may resume business operations but has certain reporting and other obligations that a Chapter 11 Bankruptcy Lawyer can ensure are followed.

The company is allowed to perform many of the duties of a trustee including hiring business specialists, breaking and re-negotiating current contracts and other strategies. Any major business decisions must be court approved.

There are some differences in the formalities for small Garden Grove businesses and individuals who file after consulting with a Garden Grove bankruptcy lawyer.

Call a Garden Grove bankruptcy lawyer at (888) 754-9877 to see if bankruptcy is suitable option for you or your business.