Chapter 7 bankruptcy is the most commonly used form of bankruptcy relief in the United States. This process involves asset liquidation for relief from creditors. When a debtor seeks Chapter 7 bankruptcy, all of the debtor’s nonexempt property enters into a trust, and the trustee converts the contents of the trust into cash to pay off the debtor’s creditors. Most of the Chapter 7 bankruptcy filings that happen in the US involve no-asset cases, or cases in which the debtor has no nonexempt property to liquidate. In such cases, the bankruptcy court will require a filing fee and review the debtor’s eligibility for debt discharge. This hurts the debtor’s credit significantly, and it will be very difficult for the debtor to obtain any type of financing in the near future, but it can offer effective relief from outstanding debts and aggressive creditors.
The most common type of bankruptcy filing used by companies in the United States is Chapter 11 bankruptcy. This part of the Bankruptcy Code allows a company to reorganize its assets and debts. Chapter 11 essentially provides a company in debt with a fresh start, but only if the company meets the criteria set forth by the Chapter 11 plan for reorganization.
Filing for any type of bankruptcy, including emergency bankruptcy, is a complex process with many moving parts. Individuals who seek emergency bankruptcy generally need financial relief as soon as possible to avoid creditors collecting on outstanding debts in disastrous ways, such as taking a house or a vehicle needed for work. Hiring an attorney streamlines the process of obtaining emergency bankruptcy status.
An experienced Anaheim, California bankruptcy attorney can be a fantastic ally when one faces severe debts but does not have the flexibility to provide the situation their full attention. People work, have families, and many other responsibilities. An aggressive creditor or a looming foreclosure or repossession can be difficult to manage with a high-stress lifestyle. Hiring an attorney allows you to place these concerns into capable hands. Your attorney will know how to handle your emergency bankruptcy filing as quickly and efficiently as possible so you can focus on reorganizing your budget and obtaining the bankruptcy filing you need to regain control over your finances.
The Law Office of Christopher P. Walker offers experienced and compassionate legal representation for bankruptcy filings in Anaheim, California and throughout Orange County. If you need to secure emergency bankruptcy status as soon as possible to avoid foreclosure on your home or repossession of a vehicle you need for work, we can help. Contact our team today to schedule an evaluation with us. We will let you know what to expect from the emergency bankruptcy filing process.