Van Nuys Bankruptcy Lawyer
Everyone struggles with debt at some point in their life. For some, though, the challenge is too great to bear. For these individuals, bankruptcy often offers a solution. While bankruptcy should always be a last resort, it can provide you with a clean slate and a fresh start. Filing bankruptcy can also help you rebuild your credit score so you qualify for other loans and credit in the future. However, filing bankruptcy is not always straightforward. There are different types of bankruptcy you can file, and the process can become complex. Below, our Van Nuys bankruptcy lawyer explains further.
- Bankruptcy and Retirement
- Bankruptcy During Divorce
- Chapter 7 Bankruptcy
- Chapter 13 Bankruptcy
- Credit Card Debt
- Creditor Harassment
- Debt Relief
- Debt Settlement
- Financial Stress
- Foreclosure Protection
- IRS Tax Debt
- Lawsuit & Judgment
- Loan Modifications
- Means Test
- Medical Debt
- Personal Loan Debt Settlement
- Second Mortgage Settlement
Chapter 7 Bankruptcy
Chapter 7 bankruptcy may be right for both businesses and individuals who are struggling with significant amounts of debt. Chapter 7 bankruptcy is also known as liquidation bankruptcy because the assets and property of the person filing are sold to help cover a portion of the debts. There are many exemptions that can protect a person’s property from liquidation. Most, if not all, of the remaining debts are then discharged, meaning the borrower is no longer responsible for paying them.
To qualify for Chapter 7 bankruptcy, many people must first pass the means test. This is not necessary if an individual has mostly business debt. The means test was put into place to reduce the amount of bankruptcy fraud occurring. To pass, you must show that you do not have the means to repay the debt. The means test makes it more difficult to qualify for Chapter 7.
Chapter 13 Bankruptcy
If you do not qualify for Chapter 7 bankruptcy, you can likely file Chapter 13 bankruptcy. Unlike Chapter 7, a Chapter 13 bankruptcy does not discharge all of your debt. The majority of debt is restructured into a repayment plan, making it more affordable to pay. Chapter 13 repayment plans extend between three and five years, which can lower the amount of payments made over a longer period of time. A portion of the debt can still be discharged in a Chapter 13 bankruptcy.
Chapter 11 Bankruptcy
The third most common form of bankruptcy is Chapter 11. This type of bankruptcy is largely reserved for businesses, but individuals with large amounts of debt may also qualify. Like a Chapter 13 bankruptcy, Chapter 11 reorganizes debt into a repayment plan.
Non-Bankruptcy Remedies for Borrowers
Again, bankruptcy should be used as a last resort, even though it has many benefits. Fortunately, there are many other remedies for borrowers with significant amounts of debt. You should always speak with an attorney before filing bankruptcy to determine which one is right for you and if you have other options.
Call Our Bankruptcy Lawyers in Van Nuys Today for a Consultation
If you are struggling with significant amounts of debt, there is help available. At Wadhwani & Shanfeld, our Van Nuys bankruptcy lawyers can outline your options, advise on which one is right for you, and guide you through the process so you have the best chance of a successful outcome. Call us now at 818-658-2669 or chat with us online to schedule a consultation and to learn more.
