Bankruptcy for Individuals and Corporations
It can be easy to fall into debt, but very difficult to climb out from it. Unpaid balances on credit cards, loans and other consumer debt gather interest, making escape even more difficult. If you should suffer illness, job loss or other financial setbacks, it may seem impossible to get out from the hole debt puts you in.
Businesses can fall into debt as easily as individuals, if not more so. And for businesses, getting out of debt can be just as difficult — especially when economic conditions change or other market forces unexpectedly cut into revenue.
At Terzian Law Group, our skilled lawyers help individuals and businesses regain their financial health through debt relief, including bankruptcy. When you come to us as a client, we will help you review your options and choose the strategy that best fits your situation.
We work with such matters as:
Chapter 7 bankruptcy
Chapter 11 bankruptcy
Chapter 13 bankruptcy
Bankruptcy Options For Individuals
The two main forms of bankruptcy for individuals are Chapter 7 and Chapter 13. We carefully review each case to determine which methods will best serve our clients. We have helped many clients in both types of bankruptcy, depending on which type better suits our clients’ needs.
To determine whether you qualify for Chapter 7, we have you fill out a questionnaire and then review your financial situation. Chapter 7 has a means test requirement, meaning that the court must look at your household income and how they measure up to your expenses. If you qualify for Chapter 7, we file a petition for relief, which automatically stops creditors from taking any debt collection against you.
Under Chapter 7, you may have to liquidate some of your assets to help pay off your creditors. However, there are many exemptions, meaning that you will be able to keep your most important assets. In many cases, Chapter 7 is the best way to wipe out your debts and begin a fresh financial start. The whole process can be over within three to five months.
The process of Chapter 13 takes longer, as it requires you to develop a payment plan that will be completed in three to five years. However, it’s important to note that both types of bankruptcy place an automatic stay on debt collection actions against you. And, at the end of your repayment plan, the court will discharge much of your remaining debt.
If you choose Chapter 13, we will help you propose a payment plan to the court, based on your assets and liabilities. Chapter 13 does not require you to liquidate your assets, and it gives you a chance to mend arrears on your home or other difficult debt such as tax debt. Chapter 13 can be a great way to save your home from foreclosure.
The two main types of bankruptcy for business are Chapter 7 and Chapter 11. Chapter 7 is often used by businesses that are winding down operations. Chapter 11 gives businesses protection from their creditors while they reorganize and prepare to return to profitability.
At Terzian Law Group, we help business leaders with bankruptcy and tax issues so they can free themselves of debt and build better companies.
Terzlaw – Bankruptcy Attorneys Pasadena
1122 East Green St.
Pasadena, CA 91106
Tel: (818) 242-1100