Businesses may become insolvent for a variety of reasons–poor investment decisions, lawsuits and and a downturn in the economy. Individuals may become mired in debt from student loans, purchase of a home, loss of a job or a sudden serious illness or accident. For any of these reasons and more, Corona residents can consult a Corona bankruptcy attorney at (844) 643-7109 to see if bankruptcy is a practical solution.

In a straight or Chapter 7 bankruptcy, consumers and businesses can wipe out most debt. Businesses have to sell off assets to pay creditors to some extent but have no further obligations.

Another option is Chapter 13 for individuals and sole proprietors who repay creditors over 3 or 5 years and can retain all assets. Foreclosures and repossessions can be stayed in a Chapter 13. A Corona bankruptcy attorney can review a consumer’s eligibility and capability to file under this chapter as well.

Other businesses and even some Corona individuals can file Chapter 11, another more complex repayment proceeding. A Corona bankruptcy attorney should advise companies on whether they can come up with a feasible plan to reorganize.

Contact a Corona bankruptcy lawyer about these various types of bankruptcy.

Chapter 7 Bankruptcy

Under Chapter 7, consumers can erase certain unsecured debt such as medical bills, credit card charges, unpaid utility and rent payments, department store bills, promissory notes, personal loans and repossession deficiencies. If your Chapter 7 Bankruptcy Lawyer verifies your eligibility and your asset status, then you may consider filing. You will have certain obligations before and after filing that your Chapter 7 Bankruptcy Lawyer can advise you on.

Your only appearance in a typical case is with the trustee and your Chapter 7 Bankruptcy Lawyer to review your petition, which outlines your financial affairs . Your Chapter 7 Bankruptcy Lawyer will have prepared this for you. Issues that arise, if any, can be easily handled by your Corona bankruptcy lawyer.

In most cases, your debts will be discharged within 4 months of filing.

Chapter 13 Bankruptcy

This is a repayment proceeding where individuals must have a reliable source of income and be able to repay creditors over 3 or 5 years pursuant to a plan formulated by a Chapter 13 Bankruptcy Attorney. Debtors may elect this plan if their income is too high for Chapter 7 as determined by a Chapter 13 Bankruptcy Attorney. Other reasons may be that they have valuable assets that may be repossessed or foreclosed upon or which may have to be surrendered to the trustee as non-exempt. A Chapter 13 Bankruptcy Attorney will advise you if this filing can be beneficial.

Debtors can include arrearages in their mortgage, auto, student loan, alimony and child support. Corona sole proprietors may include business debt if personally guaranteed by them and resume their operations. You make a single monthly payment to the trustee for distribution to creditors in order of priority. A Chapter 13 Bankruptcy Attorney can revise the plan if a subsequent event makes your current payment too difficult.

Chapter 11 Bankruptcy

Corona businesses facing insolvency can elect to file Chapter 11, a reorganization proceeding where creditors are paid back over time. The process begins with a Chapter 11 Bankruptcy Lawyer filing a disclosure and reorganization plan for certain creditors and equity holders to consider and confirm or reject.

If confirmed, the company operates its business as usual without oversight in most cases. Its restructuring or reorganization strategy will usually have to have court approval if decisions materially affect the business. This can include re-negotiating current contracts, hiring specialists and selling off assets. The Chapter 11 Bankruptcy Lawyer files progress reports for the court.

Small businesses can bypass some of the formalities and can emerge more quickly. Individuals can file also but should consult a Corona bankruptcy lawyer.

Don’t hesitate to contact a Corona bankruptcy lawyer about the bankruptcy process and how it might be the solution to your debt problems.