Is bankruptcy an option of last resort for West Covina consumers and businesses struggling to make ends meet? Not necessarily since your credit may already be impaired and paying only the interest on credit cards and risking loss of assets makes little sense. Consult a West Covina bankruptcy attorney at (888) 754-9877 about how a bankruptcy can benefit you or your business.

Covina bankruptcy attorneys handle the 3 most common types of bankruptcy–Chapters 7, 11 and 13. Individuals and businesses can file Chapter 7 that can discharge unsecured debt. Consumers have to meet eligibility criteria that a West Covina bankruptcy attorney can substantiate before filing but most West Covina residents should qualify.

Chapter 13 can be a life-saver for homeowners close to foreclosure or who risk losing a car to repossession. Debtors with large non-exempt assets can retain them under Chapter 13 that requires the debtor to repay creditors over time. A West Covina bankruptcy attorney can determine the viability of a Chapter 13 plan.

Large businesses, small businesses and individual debtors with debt too large for Chapter 7 or 13 can file for Chapter 11 protection. This allows debtors to reorganize and restructure their businesses while repaying creditors to some degree while offering them an opportunity to become a viable business.

See why bankruptcy can rescue you from anxiety and uncertainty. Talk to a West Covina bankruptcy lawyer today.

Chapter 7 Bankruptcy

If your debt is primarily credit cards, medical and department store bills and personal loans, then Chapter 7 may be suitable for you. A Chapter 7 Bankruptcy Lawyer looks at your income and disposable income to ascertain your eligibility before having you submit certain financial documents and arranging your attendance at a debt counseling class. The Chapter 7 Bankruptcy Lawyer will then file a petition with your debts, assets, current leases and contracts and household expenses. Some particular transactions have to be disclosed that your Chapter 7 Bankruptcy Lawyer will determine.

You and the Chapter 7 Bankruptcy Lawyer then attend a First Meeting of Creditors that is usually just a meeting with the trustee to see if non-exempt assets may be taken for sale. In most cases, your unsecured debt is discharged within 4 to 6 months after filing.

Most businesses filing Chapter 7 do so to dissolve their operations in an orderly way. A West Covina bankruptcy lawyer should advise you on this process.

Chapter 13 Bankruptcy

Not all debtors can file under Chapter 7 nor should they. If you are a West Covina resident with considerable assets that may be endangered in a Chapter 7 or your income is too high, a Chapter 13 Bankruptcy Attorney may advise you to file Chapter 13. You can keep all your assets in this bankruptcy while repaying creditors over a 3 or 5 year period in a plan drafted by a Chapter 13 Bankruptcy Attorney.

If you have secured loans like a mortgage or car or debts such as student loans or child support, you do have to keep your monthly payments current but you can make up the arrearages over the plan’s duration. A Chapter 13 Bankruptcy Attorney assesses this before filing the plan for a trustee’s approval.

Investment property mortgages can be reduced to the market value of the property. Talk to a Chapter 13 Bankruptcy Attorney about how this works.

Chapter 11 Bankruptcy

Corporations, LLCs and West Covina partnerships are the primary filers of Chapter 11 although creditors can also force them into involuntary bankruptcy. If contemplating filing, consult a Chapter 11 Bankruptcy Lawyer as this process is complicated, expensive and has many formalities to follow.

A Chapter 11 Bankruptcy Lawyer files a disclosure statement regarding the business’ goals and probability of a successful reorganization. The plan itself is submitted by the West Covina bankruptcy lawyer for confirmation by certain creditors that meets the standards of it being feasible, filed in good faith, is fair and equitable and of benefit to the creditors.

Over time, the business restructures with major decisions requiring court approval. Small businesses can fast track the process and individuals with substantial debt but large income potential may also file.

Talk to a West Covina bankruptcy lawyer about how bankruptcy may be your best and only viable option by calling at (888) 754-9877.