In times gone by, the word “bankruptcy” may have been whispered secretively, if it was spoken at all, and not in polite company. There was a stigma attached to the word, and connotations of shame, irresponsibility, and defeat associated with it. Times have definitely changed, and bankruptcy is no longer a dirty word.
The purpose of bankruptcy is to provide a measure of debt relief to individuals, families, and businesses in difficult financial circumstances. Although filing bankruptcy might not be something you would aspire to, neither is it something to be ashamed of, either for businesses or individuals. In current times, bankruptcy has become an acceptable means of extracting oneself or one’s business from a tough financial situation.
Bankruptcy might even be considered part of the risk of starting up a new business. There is no guarantee of success when you are embarking on a new venture, and according to an article in Forbes, eight out of every ten businesses fail.
How Common Is Bankruptcy?
If you have elected to file bankruptcy to resolve a difficult financial situation, you should know that you are not alone. ACA International reports 910,090 bankruptcy filings nationwide in 2014. A total of 34,455 of those filings were commercial and the remaining 875,635 were personal bankruptcy filings. For many people and businesses facing insurmountable debt, filing bankruptcy is the best action they could take to turn a bad financial situation around.
Chapter 11 is a common solution for companies facing overwhelming debt that need time to reorganize. A number of major corporations, including General Motors, Kodak, and America West Airlines, have sought and found protection under Chapter 11. According to the SEC, Chapter 11 gives businesses the opportunity to reorganize and attempt to become profitable again, and in many cases, they succeed.
Pasadena Bankruptcy Law
The U.S. Bankruptcy Code was passed by Congress under its authority to establish such laws, granted by the Constitution. It is federal law, and although states may pass laws governing many aspects of debtor-creditor relationships, they may not regulate bankruptcy.
Bankruptcy proceedings in Pasadena and elsewhere are conducted in U.S. Bankruptcy Courts, which are part of the U.S. District Court system. Congress established United States Trustees to handle many of the administrative and supervisory aspects of bankruptcies.
At DCDM Law Group, we have helped thousands of people and businesses obtain debt relief through bankruptcy and other debt-relief solutions. We have been practicing in Pasadena for more than 12 years, and our attorneys have been awarded 10.0 Superb Rating on Avvo.
Although bankruptcy is a viable option in many cases, it is not the only debt-relief solution available, and not always the best option for some situations. If you are considering bankruptcy in Pasadena, contact us to arrange for a free case consultation. We can advise you of your legal options and help you decide on the best course of action for you or your business.