There were over 800,000 bankruptcy filings in 2016 indicating that many individuals and businesses needed legal help when they become overextended due to unemployment, lack of economic recovery, poor investments or a catastrophic event. Bloomington residents and businesses in financial straits can call a Bloomington bankruptcy attorney at 909-341-2588 for much needed relief.

Since the bankruptcy code was changed in 2005, consumers have to qualify for filing Chapter 7 or 13. A Bloomington bankruptcy attorney can determine eligibility based on your income and debt amounts or if you previously filed. There are also requirements for filing financial documents and attending debt and financial management classes. Your Bloomington bankruptcy attorney can review these formalities with you.

Eligible debtors with substantial unsecured debt like medical bills and credit card obligations can have these liabilities discharged in a Chapter 7. A Chapter 13 can save Bloomington homeowners from losing their homes or auto after your Bloomington bankruptcy attorney files a repayment plan that allows you to repay creditors over time.

Corporations and partnerships facing lawsuits and loss of assets can file for Chapter 11 protection and have their Bloomington bankruptcy attorney file a reorganization plan that could lead to solvency.

Have a Bloomington bankruptcy lawyer advise you on whether bankruptcy might be the solution for your financial woes.

Chapter 7 Bankruptcy

If your Bloomington business is insolvent, Chapter 7 allows for the orderly liquidation of assets to pay off business debts. For consumers, a Chapter 7 bankruptcy lawyer will confirm your eligibility to file and have you complete a debt counseling class. Your Chapter 7 bankruptcy lawyer will then file your petition for relief from unsecured debt like credit cards, personal loans and medical bills.

Most debtors have assets but some may not be exempt from being taken by the trustee and sold with its proceeds distributed to creditors. Your Chapter 7 bankruptcy lawyer will advise you before you file if this is a possibility. In many cases, Bloomington debtors get to retain all assets unless you are a corporation filing Chapter 7. Call the Bloomington bankruptcy lawyer today.

After you and and your Chapter 13 bankruptcy attorney attend a short meeting with the bankruptcy trustee who reviews your financial affairs in your petition, you need to complete a financial management class before your unsecured debts are discharged.

Chapter 13 Bankruptcy

Should Chapter 7 be unavailable or you could lose too many assets, a Chapter 13 bankruptcy attorney may advise you to file Chapter 13. The eligibility criteria is not as strict though there are debt limits.

The Chapter 13 bankruptcy attorney files a repayment plan indicating the amounts to be paid to creditors over either 3 or 5 years. The plan can include arrearages owed for a mortgage, auto, student loan, tax debt or support payments. Unsecured creditors are paid last if at all. Secured personal property can be reduced to market value in the plan.

You will make a single monthly payment to the trustee for distribution. If later you suffer a setback that makes the plan unsustainable, your Chapter 13 bankruptcy attorney may be able to revise it.

At the plan’s conclusion, you can discharge any unpaid unsecured debt remaining. Consult a Chapter 13 bankruptcy attorney to see if this plan may benefit you.

Chapter 11 Bankruptcy

Any business can file Chapter 11 but it is primarily for corporations, LLCs and partnerships because of its costs and complexities. A Chapter 11 bankruptcy attorney can determine if your business has an opportunity to revive its fortunes under Chapter 11.

Your Chapter 11 bankruptcy attorney files a disclosure statement about the business and its outline for success before filing a reorganization plan for confirmation by creditors who are placed into classes. Some of these creditors vote on confirmation of the plan considering if it is feasible, filed in good faith, is fair and equitable and is beneficial to them. Call the Bloomington bankruptcy lawyer now.

During the proceedings, the debtor continues to operate. Any major decisions toward restructuring its operations must be court-approved.

Smaller Bloomington businesses are held to greater scrutiny but can emerge from Chapter 11 more quickly. Individuals with large debt who cannot file Chapter 7 or 13 may file as well. Consult a Bloomington bankruptcy lawyer about how Chapter 11 may benefit you.

Call a Bloomington bankruptcy lawyer 909-341-2588 about the different types of bankruptcy that apply to you.