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How Are Your Debts Reorganized in Chapter 11?
Chapter 11 bankruptcy offers many benefits to troubled companies, including relief from unsustainable levels of debt, a way out of burdensome contracts and some much-needed breathing room to develop a plan for the future. Once the creditors agree to a reorganization plan, the company gets a fresh start and a new balance sheet that better […]
Using Chapter 7 to Wipe Out Personal Liability for Business Debt
Many small businesses struggle to stay afloat and eventually reach the point where debt becomes unmanageable. If you are an owner or part owner of a business in that situation, you may be wondering whether you are liable for your company’s debts and whether filing a Chapter 7 bankruptcy can protect you and your personal […]
Your Options if You Can’t Make Your Chapter 13 Payments
The core of a Chapter 13 bankruptcy is the debtor’s ability to pay creditors back a portion of what is owed them. The debtor promises to make monthly payments for a specified period of time, which are determined based on the debtor’s available income sources. If all goes well, the rest of the outstanding debt […]
What to Expect When You File Chapter 11 Bankruptcy
Companies in financial distress may be able to use Chapter 11 bankruptcy to restructure and reduce debts, ultimately reemerging as healthier businesses. At one time, only large corporations could afford the costs of Chapter 11, but thanks to change in the Bankruptcy Code, many small businesses are able to take advantage of a streamlined version […]
When Can a Court Convert Your Chapter 11 Reorganization to a Chapter 7?
Businesses under financial duress can choose from two alternative courses in bankruptcy. If they believe they can reorganize and return to profitability, they can opt for Chapter 11. If not, then the path is Chapter 7, by which the business’s assets are liquidated and distributed to creditors and the company ceases to exist. A business […]
What Steps to Take – and Not Take – Before Filing for Bankruptcy
Serious financial stress can cause people to look for immediate relief. As tempting as it can be to start moving money around and trying to consolidate your debt, you may be better off filing for bankruptcy protection. To get the most out of this remedy, whether through Chapter 7 or Chapter 13, you and your […]
Factors Bankruptcy Courts Consider in Deciding Whether to Grant Relief from the Automatic Stay
The automatic stay is one of the most immediate and powerful benefits of filing for Chapter 7, 11 or 13 bankruptcy. While the automatic stay doesn’t erase debt, it puts a stop to creditors’ attempts to collect, giving the debtor some much-needed breathing room. Creditors can, however, petition the court for relief from the stay. […]
How Does Your Individual Filing for Bankruptcy Affect Your Spouse?
If you live in California, are married and are overwhelmed by debt, you may wonder if you should file for bankruptcy as an individual or jointly with your spouse. You may question, if you choose to go it alone, whether your spouse could lose some personal property, whether he or she can be held responsible […]
What to Do When Creditors Call for Payment After Your Bankruptcy Discharge
One of the most important protections you receive when you file for Chapter 7 bankruptcy is the automatic stay — a court order that immediately puts an end to most collection efforts by creditors and collection agencies. The stay goes into effect at the beginning of your case and stays in effect until the end. […]
Why is Bankruptcy Often Preferable to Debt Settlement and Consolidation?
When you’re facing crushing financial problems, you should explore all possible legal options for debt relief. But things can quickly get confusing with all the information (and misinformation) out there about debt consolidation and debt settlement. While these remedies can sometimes be useful alternatives to filing for bankruptcy, they may not be as effective in […]
