In a sputtering
economy, wages have stayed flat. In today's world, many people rely on credit
cards to help them establish and grow their businesses, pay for unforeseen
medical expenditures, and keep up with the rising cost of living expenses. When
credit card limits are reached, a company fails, or other sources of income are
no longer accessible to support a family, credit card debt can become
burdensome. To learn more about your options if this occurs to you, speak with
one of our Los Angeles bankruptcy lawyers.
A Los Angeles bankruptcy lawyer can help you sort out your present financial circumstances and possible options for bankruptcy protection under Chapter 7 Bankruptcy attorney in Victorville , Chapter 13 Bankruptcy attorney in Victorville or Chapter 11, or if you're unsure, which type of bankruptcy protection is ideal for your requirements.
The Los Angeles
Bankruptcy Attorney Group handles the following types of bankruptcy filings:
The Seventh
Chapter
Chapter 7 bankruptcy is a method of getting rid of your debt that's been accruing over
time. Everybody can benefit from it, whether individuals, couples, small
businesses, LLCs, or corporations. One of the prerequisites to filing for
bankruptcy is that you must pass a means test. If you have a yearly income
of $48,498 or
less and are a single person, you may be able to file under specific conditions
in this chapter. A family of four making the median yearly income of $76,211 is
considered middle-class. A percentage point typically increases the income cap
in April of each year. Even though your median income is higher than the
current level, you may still be eligible since your disposable income must be
less than a certain threshold amount before you are considered suitable. To
find out if you qualify for bankruptcy, contact one of our Los Angeles
bankruptcy attorneys now for a free consultation. Even if you don't think you
do, you may be eligible.
A "wage
earner" plan, which is referred to in the book as Chapter 13, is an option
for small business owners, those who don't qualify for Chapter 13 bankruptcy,
and homeowners facing foreclosure. This chapter requires you to establish a
repayment plan in your bankruptcy filing that asks you to repay your debt over
a three-year or five-year period. Unsecured creditors receive a percentage of
the debt as compensation, but they must have a reliable and steady source of
income to qualify. To continue receiving benefits from this plan, you must make
a single monthly payment. Homeowners who have fallen behind on mortgage
payments must be able to pay the arrearages over a three or five-year term to
avoid foreclosure. If you have a second mortgage on your home, it will be
forgiven at the end of the plan.
Chapter 11:
Self-Discovery
In terms of
complexity, Chapter 11, a reorganisation, is the most extensive step. Large
corporations, partnerships and even individuals are permitted to file for
bankruptcy relief under this code section. Creditors can file an involuntary
petition in some situations. The debtor-in-possession will typically submit a
written disclosure and reorganisation plan, which will be confirmed by the
creditors and then approved by the bankruptcy court, like other chapters of the
bankruptcy code, where you submit schedules your debts, assets, and financial
affairs. Even as a debtor-in-possession, you can carry on doing things like
renegotiating leases and contracts for better terms and repaying creditors at a
lower rate while you're in this situation.
