Questions About Bankruptcy and Local Law in Los Angeles
Bankruptcy is a complicated process, and can often be a confusing one3 min read
Bankruptcy is a complicated process, and can often be a confusing one. This is especially true for business owners in Los Angeles who may not be familiar with the local laws and regulations pertaining to bankruptcy. In this article, we'll discuss the Frequently Asked Questions (FAQs) regarding bankruptcy in Los Angeles and the best strategies for navigating the process.
There are several different types of bankruptcies to choose from in Los Angeles - Chapter 7, Chapter 13, and Chapter 11. Prior to making a decision, it is important to understand all of the options and implications of each. Below, we've outlined some common questions people have when navigating the bankruptcy process in Los Angeles.
What is Chapter 7 Bankruptcy in Los Angeles?
Chapter 7 bankruptcy is a filing which allows an individual or business to liquidate all of their assets and repay creditors according to a predetermined agreement. This type of bankruptcy is generally used for individuals who have too much debt to repay and aren’t able to make regular payments. It is the quickest form of bankruptcy in Los Angeles, as it typically takes between 3-4 months for the process to be complete.
What is Chapter 13 Bankruptcy in Los Angeles?
Chapter 13 bankruptcy is often used for individuals who are able to make some regular payments toward their debt but need assistance with organization and get out from under overwhelming debt. It also allows individuals or businesses to restructure their debts and pay them over a period of three to five years. This type of bankruptcy usually takes six months to reach a final settlement and is often used for individuals who have a steady income source but have significant debt.
What is Chapter 11 Bankruptcy in Los Angeles?
Chapter 11 is the most complex form of bankruptcy available in Los Angeles. It is often used by businesses who need to reorganize their finances and restructure how debt is handled, including the ability to pay creditors over time in order to reduce or eliminate payments due. This type of bankruptcy can take between 18-24 months for the case to be completed, meaning it is often the most time consuming and costly form of bankruptcy.
What are the Benefits of Bankruptcy in Los Angeles?
Bankruptcy is a complicated process but, if done correctly, has several advantages. These include debt relief, the ability to negotiate with creditors and the chance to reorganize finances. In addition, filing for bankruptcy in Los Angeles can also stop wage garnishments, protect assets from creditors, and even protect businesses from closure. Ultimately, filing for bankruptcy can be a difficult but necessary step in order to regain a foothold on a financial situation and can be worth the admittedly steep cost in terms of both time and money.
Who Should I Contact for Help With a Bankruptcy in Los Angeles?
Working with an attorney or legal professional who specializes in bankruptcy is one of the best steps a business or individual can take when filing for bankruptcy in Los Angeles. They can provide important guidance throughout the process and can ensure that everything is filed correctly. UpCounsel is the perfect resource for those looking for legal assistance – offering a network of experienced business lawyers perfect for those seeking one-time counsel or an entire freelance legal department. Our attorneys' profiles display client ratings and reviews of their recent work and have an average of 14 years of experience.