San Pedro, California
Falling into debt is all-too-easy in this day and age, as many families are struggling with low property values, job loss, medical problems or the increased cost of living. When your debt reaches an amount that is too high to allow you to comfortably make payments or that is too high to ever reasonably pay back, you need to take proactive steps to deal with the problem before it becomes even more out-of-control. One option you have is to contact an experienced San Pedro bankruptcy attorney for help in filing for bankruptcy protection.
San Pedro Bankruptcy Protection
Bankruptcy protection is available for both consumers and individuals under different chapters of the federal bankruptcy code. The most common chapters used by both individuals and businesses include chapter 7, chapter 11 and chapter 13. Your San Pedro bankruptcy attorney will explain to you the qualification requirements for each chapter as well as the debt limits that each of these different bankruptcy chapters can resolve.
For individuals, the options that your San Pedro bankruptcy lawyer will usually present to you include chapter 7 and chapter 13. Chapter 7 is not available to everyone, however, as your income either has to be below the median in California or you will need to pass a test called a means test. When Chapter 7 is available to you, you will be able to have your debts forgiven or discharged without having to repay them, but you will first need to have your non-exempt assets sold and the proceeds distributed among creditors. Chapter 13 is available to higher-income individuals and doesn't involve the sale of any assets, but does require a 3-5 year repayment plan.
For businesses, chapter 7 or chapter 11 are usually the options presented by your San Pedro bankruptcy lawyer. Chapter 7 is the option that businesses use when they want to liquidate their assets and stop operation, while chapter 11 allows for debts to be restructured and the business to continue operating. Chapter 11 is also an option for individuals with high amounts of debt that owe too much to qualify for chapter 13.
The San Pedro Bankruptcy Process
After your San Pedro bankruptcy attorneys reviews your financial situation, he will help you to understand both whether filing for bankruptcy is your best course of action and what chapter of bankruptcy is the best option to choose. Your San Pedro bankruptcy lawyer will then take care of the filing process for you, including completing the extensive amount of paperwork available. It is very important that this is done correctly to avoid some debts not being discharged and to avoid delays in the bankruptcy process.
Your San Pedro bankruptcy attorney will then be your guide every step of the way, whether helping you to create the chapter 13 repayment plan or assisting in dealing with creditor motions.
Getting Legal Help
Taking the first step to declare bankruptcy can be scary but it can be the best way to begin to move forward. Contact our experienced San Pedro bankruptcy lawyers today to get started on building a better financial future. IF you are looking for a Canoga Park bankruptcy lawyer or a bankruptcy attorney in Los Angeles, Culver City, Hollywood, Pomona or the Antelope Valley, we can also help.