A competent Marina del Rey, California, bankruptcy attorney with integrity.
BANKRUPTCY, CHAPTER 7
Chapter 7 is the liquidation chapter of the Federal Bankruptcy Code. These cases are commonly referred to as “complete straight bankruptcy” or “liquidation” cases, and may be filed by an individual, corporation, or a partnership. Under a chapter 7 bankruptcy, a trustee is appointed to collect and sell all property that is not exempt and to use any proceeds to pay creditors.
In the case of an individual , the debtor is allowed to claim certain property exempt. In exchange for this, the debtor gets a discharge, which means that the debtor does not have to pay certain debts. Corporations and partnerships do not receive discharges. Consequently, any individuals legally liable for the partnership’s or corporation’s debts will remain liable. Therefore, individual bankruptcies may be required as well as the corporation or partnership bankruptcy.
You would probably file a Chapter 7 bankruptcy if you wanted to “wipe out” your unsecured (such as credit card) debt when there is no way to pay it off.
Unfortunate events that may trigger a bankruptcy:
Unsustainable medical bills
Loss of income
Investment or financial fraud
BANKRUPTCY, CHAPTER 11
Generally businesses utilize this chapter of the bankruptcy code. As in Chapter 13, Chapter 11 requires a reorganization and payment plan which is typically administered by a trustee.
Chapter 11 can give a debtor a fresh start, subject to the debtor’s fulfillment of it’s obligations under it’s plan of reorganization.
Keep in mind, a Chapter 11 bankruptcy should only be considered after careful analysis and investigation. It may be more costly than the other forms available to a debtor.
BANKRUPTCY, CHAPTER 13
For folks who making a somewhat steady income, Chapter 13 may be a better option. A Chapter 13 bankruptcy allows a person, or sole proprietorship, to come up with a plan to repay a portion of the debts that are owed and receive a complete discharge of the debts.
You may also be able to keep your house, car and other assets. Chapter 13 bankruptcy allows you to reduce the amount you owe on certain secured debts to the value of the collateral.
This remedy (commonly referred to as a cramdown) makes it easier to keep some kinds of collateral, like a car. Chapter 13 allows the debtor to strip off junior liens on a home if the value of the home is less than the first mortgage.
As in a Chapter 11 bankruptcy, a Chapter 13 bankruptcy requires a reorganization and payment plan which is typically administered by a trustee.
A WORD FROM MITCHELL SPERLING:
My family has roots in Sherman Oaks and San Fernando Valley going back to 1948. Back then Model T’s were still racing up and down Ventura Boulevard. You could have also seen starlets dining at Du-Par’s restaurant into the wee hours of the morning.
Well a lot has changed since then.
My law practice provides the personal touch that seems to be lacking with so many larger impersonal law firms. The days of relentlessly over-charging clients are over. Big firms, with even bigger bills,* are unsustainable in this economic climate. Especially for so-so results! (see what judges have to say about big bills below*).
I promise to provide a high level of expertise at an affordable cost. My family owns the building where the firm is located. As a result we can pass the cost savings onto our clients.
Unlike other establishments, our firm’s policy is not to over-charge for telephone calls, faxes or copies. In many instances, our firm will charge a flat fee for services.
Thank you for your trust, Mitchell Sperling, Esq.
“Our mission is to cost effectively negotiate, mediate, or, if necessary, litigate, a fair settlement.”
No charge consultation (818) 205-9090 We can come to your location for initial interview.
Our fess are reasonable and fair. Financing available, payments acceptable.
The Sperling Law Firm 13960 Ventura Blvd., 2nd Floor Sherman Oaks, CA 91423 Tel: (818) 205-9090 Fax: (818) 205-9099 firstname.lastname@example.org
* “Big firms, with even bigger bills” is not an exaggeration.”
Consider this quote from Los Superior Court, then-presiding family law judge, Aviva Bobb, from a bar association meeting in September 2002. “By the time we see [divorce] cases in court, most people have spent all their community assets on the divorce itself.”
Also according to Presiding California Family Law Judge Marjorie Steinberg in the Los Angeles Times Magazine, May 4, 2008, if a couple can get a divorce for $100,000 in Los Angeles, Judge Steinberg considers that “pretty cheap.”