Even with careful financial strategies, a budget and smart business decisions, unforeseen events or those out of your control can upend the best of plans. A job layoff, business lawsuits, a serious illness or accident can lead to a pile of debt with no reasonable solution to paying it off. In Placentia, residents and business owners can seek advice from a Placentia bankruptcy attorney at (888) 754-9877.

A Placentia bankruptcy attorney handles Chapter 7, Chapter 13 and Chapter 11 for consumers and businesses. Straight bankruptcy under Chapter 7

is a liquidation where you or a business can wipe out certain debt and surrender assets that are used to pay off creditors to a certain extent. Personal assets can be exempt to a degree that a Placentia bankruptcy attorney can confirm.

Other options are Chapter 13 and 11, both repayment proceedings where debts are adjusted and creditors repaid in installments while assets are protected. A Placentia bankruptcy attorney will advise you of which type of filing is available or beneficial to your situation.

Chapter 7 Bankruptcy

Business debt and unsecured debt such as credit cards, medical bills, department store charges, personal loans, promissory notes, payday loans and repossession deficiencies can be discharged with the help of a Chapter 7 Bankruptcy Lawyer. Consumers are entitled to certain exemptions for their assets that a Chapter 7 Bankruptcy Lawyer can review.

Individuals must meet certain income criteria that a Chapter 7 Bankruptcy Lawyer will verify. The Chapter 7 Bankruptcy Lawyer will also see that individual filers meet certain obligations before they file and prior to discharge.

Chapter 13 Bankruptcy

Individuals and sole proprietors may file Chapter 13. Some debtors do not meet income requirements for Chapter 7 or a Chapter 13 Bankruptcy Attorney may advise that it is more beneficial to file Chapter 13. A Chapter 13 Bankruptcy Attorney can help Placentia residents avoid home foreclosures or repossessions by filing. The Chapter 13 Bankruptcy Attorney can include these past due payments in the plan whereby secured and other creditors with priority are paid in 3 years or in 5 if good cause is shown.

Debtors need a steady and reliable source of income. Secured income can be adjusted by the Chapter 13 Bankruptcy Attorney for inclusion in the plan that can save you money. Sole proprietors can include business debt in the plan so long as they had personally guaranteed it.

Chapter 11 Bankruptcy

Other Placentia businesses can elect to file Chapter 11, another repayment proceeding where debt is also adjusted and creditors paid back over time. A business should first consult with a Chapter 11 Bankruptcy Lawyer before filing. The debtor corporation or other business can reorganize its operations under a plan submitted by a Chapter 11 Bankruptcy Lawyer.

Creditors whose obligations are reduced or “impaired” vote on confirming the plan that advises them how they will be paid and what restructuring strategies it hopes to implement. The Placentia bankruptcy lawyer also files schedules of the company’s financial affairs with the court.

Once confirmed, the Placentia business has the powers of a trustee concerning filing and reporting requirements that a Placentia bankruptcy lawyer can ensure compliance with and retains control over its assets and operations. However, it will need approval from the court if the business wants to expand, buy another company, sell major property or items of equipment or put into implementation other major decisions.

Smaller businesses and individuals who elect to file if advised by a Placentia bankruptcy lawyer can bypass some of these reporting and filing requirements.

Call a Placentia bankruptcy lawyer at (888) 754-9877 about eligibility, availability and benefits of a bankruptcy as it pertains to your financial circumstances.