It doesn’t necessarily take a disaster to strike before considering bankruptcy as an option to get out of drowning debt. You could have overextended yourself on an investment or failed to appreciate the costs of a project. Perhaps you co-signed on a debt for a friend or relative who defaulted or your insurance coverage doesn’t extend to an accident and now you are being sued. If anything of this is remotely similar to your circumstances, call a Menifee bankruptcy attorney at 951-400-5739.

Considering Chapter 7? Call a Menifee bankruptcy attorney first to see if you qualify or you may risk forfeiting valuable assets. If filing is advised, you can get rid of unsecured debt and even return secured property with no further obligations. If ineligible or filing is not advisable, talk to a Menifee bankruptcy attorney about Chapter 13. Under this chapter, you repay creditors and get to keep your assets. It can also prevent foreclosure or repossession.

Larger Menifee business entities and corporations can turn to Chapter 11 with the assistance of a veteran Menifee bankruptcy attorney. You can restructure your business and repay creditors, often at reduced amounts, and bring your business back to life.

Chapter 7 Bankruptcy

If your Chapter 7 bankruptcy lawyer says you are eligible and filing is a reasonable option, you can rid yourself of unsecured debt like credit cards, department store bills, medical bills and personal loans. With secured debt, you can reaffirm the debt, redeem it (pay the replacement value and keep it) or return the collateral and walk away.

After completing a debt counseling course arranged by your Chapter 7 bankruptcy lawyer before filing, your Chapter 7 bankruptcy lawyer will assist you with listing your debts, assets, household expenses, executory contracts and leases. You and your Chapter 7 bankruptcy lawyer will then attend a meeting with the trustee to see if any non-exempt assets are worth pursuing and review your other financial affairs. Any issues can be handled by your Chapter 7 bankruptcy lawyer.

Most consumer Chapter 7 cases are routinely discharged in 4 to 6 months after filing. Talk to a Menifee bankruptcy lawyer about the process for your Menifee business.

Chapter 13 Bankruptcy

There are eligibility requirements for Chapter 13 that a Chapter 13 bankruptcy attorney can confirm. You also need a reliable source of income. Your Chapter 13 bankruptcy attorney submits a repayment plan whereby you repay debts over 3 or 5 years with secured creditors paid first. You can include arrearages for your mortgage, car, student loan, alimony and child support in the plan but make sure you advise your Chapter 13 bankruptcy attorney that you can keep your regular monthly payments current.

Secured debt can be also be reduced to market value and made a part of the plan. Consult a Chapter 13 bankruptcy attorney as to whether this is a feasible plan for you.

Chapter 11 Bankruptcy

A business failing to meet its debts or goals may elect to file Chapter 11 or be forced into it by frustrated creditors. A Chapter 11 bankruptcy attorney submits a disclosure statement to assure creditors the Menifee business can become solvent and repay its obligations. Within 4 months of filing, or up to 18 months in some cases, the Chapter 11 bankruptcy attorney files a reorganization plan. Creditors are put into classes and advised on how they will be paid and to what extent. Impaired creditors vote on the plan to confirm it.

If confirmed, the LLC, corporation, partnership or other business operates as usual but implements a restructuring with the approval of the bankruptcy court. This can include shutting down or selling off subsidiaries or assets, entering into new vendor, union and other contracts and seeking financing. There is no time limit on repaying creditors.

Smaller businesses are under greater supervision but are not held to the same formalities or extensions so they may more quickly emerge from Chapter 11.

Take the first step toward a fresh start by calling a Menifee bankruptcy lawyer at 951-400-5739. A Menifee bankruptcy lawyer will advise and represent your interests in any filing that is right for you.