Debt resolution can sometimes reduce some debt but you often have to pay a company high fees to do so without any guarantees. If you stop paying on a debt, interest and penalties will accumulate. And if a creditor agrees to reduce its debt, you will have tax consequences.

Instead, talk to a Rosemead bankruptcy attorney at 323-998-8318 about how bankruptcy might be the more practical solution. You can be relieved of crushing unsecured debt like credit cards, department store charges and medical bills in a Chapter 7. In a Chapter 13, you can pay off creditors pursuant to a plan and save your home from foreclosure or an auto from repossession. For both filings, a Rosemead bankruptcy attorney will determine your eligibility to file.

Rosemead businesses can dissolve and wind up operations in a Chapter 7 without creditor hassles or owing more once its assets are liquidated. Or, it can elect to file Chapter 11 and reorganize with the help of a Rosemead bankruptcy attorney.

A Rosemead bankruptcy attorney will give you honest and professional advice about what you can expect and if a bankruptcy is the proper course of action for you situation.

Chapter 7 Bankruptcy

Should you elect to file Chapter 7 after consulting with a Chapter 7 bankruptcy lawyer, you must first qualify based on your income and liabilities. If you do, a Chapter 7 bankruptcy lawyer can determine if assets need to be surrendered or if Chapter 13 is more appropriate.

A Chapter 7 allows Rosemead debtors to erase debts like credit cards, medical bills, personal loans and some taxes. Your Chapter 7 bankruptcy lawyer will apprise you of your obligations before filing and after.

A Chapter 7 bankruptcy lawyer prepares a petition of your financial affairs for review by the bankruptcy trustee at a meeting attended by you and your Rosemead bankruptcy lawyer. You have no other required appearances and only need to attend a financial management class before discharge.

Chapter 13 Bankruptcy

If ineligible for Chapter 7 or your Chapter 13 bankruptcy attorney advises that certain assets will have to be surrendered, then Chapter 13 may be a solution. Your Chapter 13 bankruptcy attorney will file a repayment plan for trustee approval that includes your liabilities. Creditors are paid in order of priority with secured debts paid first such as taxes, mortgages and auto loans.

Arrearages can be included in the plan so that your home can be saved from foreclosure. Past due alimony and child support can be in the plan as well. Certain secured debt can be reduced to market value in the plan by your Chapter 13 bankruptcy attorney.

Talk to a Chapter 13 bankruptcy attorney for more information about this type of bankruptcy.

Chapter 11 Bankruptcy

Rosemead businesses having trouble meeting obligations can file to reorganize under Chapter 11. Individuals can file if they have substantial debt and are ineligible under Chapter 7 or 13.

A Chapter 11 bankruptcy attorney files a reorganization plan that classifies creditors and informs them if their debts will be modified and how they will be paid. A restructuring strategy is disclosed that aims to revive the business. Certain creditors vote to confirm or reject the plan based on whether it is feasible, filed in good faith, is fair and equitable and is beneficial to them.

The business debtor continues its business as usual with little trustee supervision except that restructuring decisions need court approval. This can include selling off assets, breaking contracts and leases, modifying licensing and other agreements and seeking refinancing.

A Chapter 11 bankruptcy attorney can advise smaller Rosemead businesses about fast tracking and moving through the process more quickly though they are under greater court supervision in its restructuring. A Rosemead bankruptcy lawyer files progress reports and handles creditor issues.

Call a Rosemead bankruptcy lawyer at 323-998-8318 about debt relief and how you or your business can get a new start.