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Bankruptcy is an Option for Businesses in California and Beyond

types-of-bankruptcy.jpgBankruptcy is one of those subjects that most people don't know much about because they don't want to know about and even tune out information or avoid the topic altogether. It is a shame because filing bankruptcy can help individuals to jettison debt or craft a viable plan to repay debts. In the Bay Area, a person can begin the process by working with an experienced San Jose bankruptcy attorney to file a petition with the bankruptcy court.

Single Individuals, Spouses, Corporations, and Other Entities May File a Bankruptcy Petition

The rules governing bankruptcy are set out in the U.S. bankruptcy code, and all bankruptcy cases, no matter the type or "Chapter," are handled in federal (rather than state) courts. You may be familiar with the most common types of bankruptcy petitions: Chapter 7, Chapter 11, and Chapter 13. These, however, are not the only bankruptcy chapters. The appropriate chapter to file a petition for depends, in part, upon whether the petitioner is an individual, spouses filing together, a corporation, or other entity. Individuals, depending on the facts at hand, may file for Chapter 7 or Chapter 13 bankruptcy.

Businesses seeking to liquidate may file for Chapter 7, while businesses seeking to reorganize may file for Chapter 11 bankruptcy. Chapter 9, one of the less-discussed forms, is available to municipalities (e.g. cities, town, villages, tax districts, utilities, school districts) to reorganize debt. Perhaps still less on the radar is Chapter 12, which offers the prospect of debt relief to fishermen and family farmers. Finally, Chapter 15 bankruptcy may be appropriate when the filing involves parties from more than one country.

Relying on a Qualified Bankruptcy Attorney is a Must

The chance to liquidate or reorganize debt through bankruptcy is a great resource. Because bankruptcy has lasting financial and legal consequences, it is strongly advised to rely on the skill and expertise or a qualified California bankruptcy attorney. An experienced attorney will listen to you describe the specifics of your financial situation, whether in your capacity as an individual consumer or with regard to your business. From there, the appropriate chapter under which to file a petition may be ascertained, a filing diligently completed, and the process begun. Most importantly for your future and peace of mind, an experienced bankruptcy will be there for every step of the process, communicating with you all along the way.

Source:

https://www.usbankruptcycode.org/

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