East Los Angeles residents and business owners seeking debt relief can call an East Los Angeles bankruptcy attorney at 323-272- 2461 about how to wipe out certain liabilities.

There are 3 main bankruptcy filings that an East Los Angeles bankruptcy attorney can discuss with you. A Chapter 7 is a straight bankruptcy where certain debt is discharged and assets may be sold to pay off creditors. Consumers can take advantage of exemptions for their property in certain amounts. A East Los Angeles bankruptcy attorney should review your assets to see if certain property might have to be surrendered.

Chapter 13 is for individuals to pay back creditors pursuant to a plan while retaining all their assets.

Chapter 11 is primarily for corporations and partnerships seeking to reorganize while paying back creditors in a more complicated version of a Chapter 13. An East Los Angeles bankruptcy attorney handles the filing and reporting requirements.

Chapter 7 Bankruptcy

If making monthly payments for unsecured debt like credit cards, department store and hospital bills becomes too much, a Chapter 7 bankruptcy lawyer may advise you to consider Chapter 7. Your eligibility depends on your income that cannot exceed the state median or have disposable income that is too high. There are obligations a Chapter 7 bankruptcy lawyer will explain to you to follow before and after filing.

East Los Angeles businesses winding up their operations will have assets sold to pay off creditors but have no further obligations. Discuss with an East Los Angeles bankruptcy lawyer about corporate and partnership dissolutions.

Your only appearance is at a 341 Meeting with you and your Chapter 7 bankruptcy lawyer to review the petition submitted by your Chapter 7 bankruptcy lawyer. This contains your financial affairs including income, expenses, debts and financial transactions over the past 2 years.

Your discharge of unsecured debt is generally granted 90 days after this meeting.

Chapter 13 Bankruptcy

Sometimes an East Los Angeles consumer or sole proprietor has assets that will be surrendered in a Chapter 7. A Chapter 13 bankruptcy attorney may recommend this type of filing if you risk losing a home, auto or are threatened with default on alimony, student loan or child support obligations.

A Chapter 13 bankruptcy attorney files a repayment plan for paying creditors over 3 or 5 years. Secured personal property can be reduced to market value and included in the plan. Your Chapter 13 bankruptcy attorney can advise this for a sole proprietor with personal and business debt that is personally guaranteed.

Priority in payments is given to mortgages, auto, employees and taxes. Any unsecured debt left unpaid can be wiped out when the plan concludes. Your Chapter 13 bankruptcy attorney can advise you on discharging junior mortgages as well.

Chapter 11 Bankruptcy

East Los Angeles businesses unable to pay creditors and facing lawsuits and asset seizures can seek protection under Chapter 11 or be forced into it by creditors. A Chapter 11 bankruptcy attorney files a disclosure statement with information about the business and its plans to return to solvency followed by a reorganization plan.

The plan places creditors into classes and informs them how they will be paid and the scheme for restructuring. Particular creditors and equity holders vote to confirm the plan. This is complex process that your East Los Angeles bankruptcy lawyer can discuss with you.

If confirmed, the business remains functioning as usual but major decisions on how it will reorganize must be court approved. Chapter 11 does allow a business to break and modify contracts, hire certain personnel, sell off assets and other strategies if the court agrees.

The business Chapter 11 bankruptcy attorney files progress reports with the court and deals with creditor concerns.

Call an East Los Angeles bankruptcy lawyer at 323-272- 2461 for more information about bankruptcy and how it could relieve you of pressing debt problems.