Without careful financial planning, debt can easily accumulate in a very short time. In many cases, layoffs or a sudden illness or injury can deplete savings and cause you to borrow money to make ends meet. And, when things return to some normalcy, you are stuck with a mountain of debt and no practical way to pay it off.

Montebello residents who find themselves in similar circumstances can call a Montebello bankruptcy attorney at (888) 754-9877 to see what can be done. Montebello bankruptcy attorneys can advise you about Chapter 7, Chapter 13 or Chapter 11 if your business is struggling.

Depending on your economic and financial status, Chapter 7 or 13 can help Montebello consumers rid themselves of nagging debt or help pay it off over several years. A Montebello bankruptcy attorney can explain which type of bankruptcy can benefit you based on your needs and situation.

Chapter 11 is a complex procedure for businesses who want to reorganize their affair and operations while paying back creditors. Have a Montebello bankruptcy attorney advise you in detail about how this process works.

Chapter 7 Bankruptcy

Chapter 7 can allow Montebello consumers with debt like credit cards, medical bills, department store charges, personal loans and even some taxes to be discharged. A Chapter 7 Bankruptcy Lawyer can advise you on what debts are not dischargeable. Eligible filers cannot have income that exceeds the state median or disposable income that is too high.

A Chapter 7 Bankruptcy Lawyer will also examine your assets because there is limit on the amount of equity you can keep in property like a car or home.

If you elect to file, the Chapter 7 Bankruptcy Lawyer prepares a petition of your financial affairs once you complete a debt counseling class. After filing, you and the Chapter 7 Bankruptcy Lawyer will meet with a trustee who reviews the petition and asks some basic questions.

In most cases, the discharge of your debts is granted about 90 days after this meeting. Talk to Montebello bankruptcy lawyer about secured debt and how business dissolutions are handled.

Chapter 13 Bankruptcy

If you risk losing too many assets in a Chapter 7 or are otherwise ineligible to file Chapter 7, a Chapter 13 Bankruptcy Attorney may advise you about a Chapter 13. In this proceeding, you retain all your assets but repay creditors over 3 or 5 years. Your Chapter 13 Bankruptcy Attorney can explain that secured creditors with priority are paid first. This includes overdue mortgage, car, taxes, alimony, child support and student loans. You do have to make your normal monthly payments on these types of debts.

Debtors make a single monthly payment to the trustee for distribution. Sole proprietors can include business debt for which they are personally liable. Have a Chapter 13 Bankruptcy Attorney counsel you on how Chapter 13 can benefit you.

If an unforeseen event impairs your ability to make the payments, your Chapter 13 Bankruptcy Attorney can possibly revise the plan.

Chapter 11 Bankruptcy

Chapter 11 is a business reorganization process for corporations and partnerships though individuals can file as well if they are ineligible to file under other chapters. A Chapter 11 Bankruptcy Lawyer files a disclosure statement to advise creditors on how they will be repaid while informing them of how the business hopes to restructure.

A reorganization plan is submitted by the Chapter 11 Bankruptcy Lawyer that places creditors into classes and states how they are to repaid. Certain creditors vote to confirm the plan after considering its feasibility, fairness, and if it was filed in good faith and benefits them. Not all creditors are paid in full. For small businesses, a Montebello bankruptcy lawyer can explain how the process is different for them.

The business may conduct its normal daily affairs but major decisions on restructuring such as downsizing and modifying contracts and agreements must be court-approved.

Call a Montebello bankruptcy lawyer about bankruptcy at (888) 754-9877 and see how bankruptcy can be a practical solution to resolving debt issues.