Chapter 7, 11, 13 Bankruptcy

An individual or business who is badly in debt can file for bankruptcy in one of several ways as outlined in Title 11 of the United States Bankruptcy Code. As you can imagine, the code can be complex and difficult to understand for mostly everyone except bankruptcy lawyers. A few common options for bankruptcy filing include Chapter 7 which is liquidation, or called straight bankruptcy. Under Chapter 11 a business may undergo reorganization and under Chapter 13 an individual undergoes reorganization.

The Temecula bankruptcy law firm of Marc A. Duxbury will take the mystery out of bankruptcy law and help you understand your legal options. To get you started here is some basic information that we hope is helpful. And if you are considering bankruptcy, but are not quite sure, don’t hesitate to give our lawyers a call or come in for a legal consultation.

Chapter 7 Bankruptcy in Temecula

This is the most common form of bankruptcy in the United States and governs the process of liquidation. When a business is badly in debt and unable to pay its creditors, it may file or be forced by creditors to file under Chapter 7. Filing under Chapter 7 means that the business ceases its operations unless the business is continued by the Chapter 7 Trustee. A Chapter 7 Trustee is appointed by the court and typically sells all the assets and distributes the proceeds to the creditors.

Temecula Chapter 11

This chapter of the United States Bankruptcy Code permits reorganization under US bankruptcy laws. Chapter 11 bankruptcy is available to large corporations and small business alike. It can be used for a corporation or sole proprietorship, and to individuals, however it is mostly used by corporate entities. In Chapter 11 the filing entity usually retains its assets and operates the business under the supervision of the court and for the benefit of creditors.

Chapter 13 in Temecula

This form of bankruptcy enables individuals to undergo a financial reorganization as supervised by a federal bankruptcy court. The goal of Chapter 13 is to enable income-receiving debtors to restructure or rehabilitate their debt according to a court-approved plan. According to the United States Bankruptcy Code, under the supervision of the court, the individual will have 5 years to repay the debt.

For more information about our Temecula bankruptcy services, please contact us at (760) 438-5291 or toll free at (877) 817-7373.