How Bankruptcy Filing Works

Bankruptcy is a legal process wherein the filer legally declares the inability to pay back debts to creditors. There are six different types of bankruptcy recognized in the US bankruptcy code. Certain types or “chapters” of bankruptcy may allow an individual to keep some of their assets while making payments on a scheduled plan, while other forms of bankruptcy involve the handing over of all assets.

Here at the office of the Anaheim bankruptcy attorney, our legal team is knowledgeable and experienced in the area of bankruptcy law, and can assist any client file for any of the six available options such as a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, or a Chapter 13 bankruptcy.

Businesses and business owners have a few different options when filing for bankruptcy. If you are a business owner, you may be able to choose a Chapter 7 bankruptcy, which is the simple, generic liquidation of assets.

Our Anaheim Bankruptcy Lawyer Can Help You Through the Process

A Chapter 7 filing may mean that you must stop operating as a business unless your Chapter 7 Trustee says that you can continue on. Depending on how much debt your business has, your Chapter 7 Trustee will evaluate your business’s finances and sell off a certain portion of assets (or all of your assets) to pay back your creditor.

For individuals, a Chapter 7 filing is essentially the same as with a business, albeit you will be dealing with your personal assets. You will be allowed to keep certain exempt property. Your bankruptcy will appear on your credit report for ten years after the date filing.

This is just one of the six options for bankruptcy. If you would like to discuss your bankruptcy options, contact us here at the law office of the Anaheim bankruptcy attorney today for a free initial consultation.