Tag Archives: equity
Reorganizing Various Classes of Debt in a Chapter 11 Plan
Chapter 11 bankruptcy, also referred to as reorganization, is primarily utilized by corporations, partnerships and LLCs to restructure and partially repay their debts while continuing their business operations. The principle behind this remedy is that a debtor company is more valuable as an operating entity than in liquidation (i.e., through a chapter 7 bankruptcy), thereby […]
Claiming the Homestead Exemption in a California Bankruptcy
When a debtor files a Chapter 7 petition, the U.S. bankruptcy trustee is authorized to sell certain of the debtor’s assets to pay the creditors. However, much if not all of those assets can be shielded from liquidation through the use of exemptions allowed by federal or state law. One of the important exemptions for […]
Getting the Most Out of California’s Homestead Exemption in Bankruptcy
Homeowners who fall on hard financial times often rule out bankruptcy because they fear it means they might lose their home. But in reality, many owners are able to use California’s homestead exemption to file for Chapter 7, receive a discharge and keep their home. For 2022, the exemption is $300,000 or the median sale […]
