Bankruptcy

For an individual or business looking at the possibility of filing for bankruptcy, it can feel like a scary and overwhelming process. At Lodestone Legal Group, we help guide clients though the bankruptcy process and help clients to prepare and file the bankruptcy petition. We then continue to provide guidance to clients up through the entire process until a discharge is received. We take the time to understand our client’s unique situation, to explain the entire process to the client, and advise the client on how to get the relief needed and how-to get the maximum results from bankruptcy.

What Are My Options?

Chapter 7 liquidation is typically advisable for clients who have no assets of significant value and have accumulated debt that the client simply cannot repay. The usual Chapter 7 case lasts 3 to 5 months and only requires the client to make one court appearance. Chapter 7 will allow the client to discharge burdensome obligations such as medical debts, a home, or vehicle which the client can no longer afford.

Chapter 13 is a reorganization that is typically advisable for clients who have significant assets that they want to keep or clients who have fallen behind on a home or vehicle that they want to keep. Chapter 13 allows a client to consolidate all their debts and to develop an affordable payment plan for those debts. The plan usually allows the client to pay off their debts over a 36 to 60-month period.

Chapter 7 liquidation is typically advisable for a business in which the business owner desires to shutdown the business and to leave the shutdown process to someone else. In a Chapter 7, the assets or the business will be liquidated, and all the proceeds will be distributed to the creditors of the business. Chapter 7 allows for a simple and clean shutdown of the business.

Chapter 11 is a reorganization that is typically advisable for a business which has debts but significant revenue. Chapter 11 allows a business to continue to operate as it ordinarily does but with bankruptcy court supervision and protection. This allows the business to discount and restructure its debts while repaying the debts over a longer period of time and to terminate burdensome contracts and leases allowing the business to move forward.

Disclaimer

The information and materials available at this web site are for informational purposes only and not intended for the purpose of providing legal advice. You should contact an attorney for advice with respect to any particular issue or problem. Accessing this website, the material posted on this website, the email links contained within this site do not create an attorney-client relationship between Lodestone Legal Group and the user. The opinions expressed on this site are the opinions of the individual author and may not represent the opinions of the firm or any individual attorney.

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