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Like it or not, bankruptcy affects all of us. In the current economic and political climate, businesses and individuals are feeling the pinch and filing bankruptcy petitions at a record pace. Many of us in California have been affected by the bankruptcies, both local and national, whether it be by the loss of a customer, employment, or an otherwise valuable investment. Others have written off open credit accounts or faced added difficulty enforcing orders for spousal or child support, or property distribution when a personal bankruptcy case has been filed. Understanding some of the basics of bankruptcy can help you identify when to take action.
The general policy behind bankruptcy relief is to provide a fresh start in financial matters by a reduced payment plan and modified payment terms, or through a total liquidation of all assets. Individuals that successfully complete a bankruptcy proceeding receive a "discharge," which relieves them of the legal responsibility to pay most debts. Businesses seek bankruptcy protection to reorganizae and continue operations or to orderly liquidate assets.
A bankruptcy case is initiated by filing a petition in bankruptcy, which usually is voluntarily filed by the debtor. The debtor files several schedules with the bankruptcy court showing assets, debts, income, expenses and other financial information. In a personal or business reorganization case, the debtor also proposes a repayment plan.
KIRK & SIMAS' team is experienced in assisting clients with strategy and negotiations which can lead to constructive work-out solutions, and may avoid a potential bankruptcy filing. If necessary our team will represent you in dealing with a bankruptcy filing.
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• TYPES OF BANKRUPTCY •
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• DEBTORS •
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• 341 CREDITORS' MEETING •
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• AUTOMATIC STAY •
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• BANKRUPTCY OBJECTIONS •
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• BANKRUPTCY PROTECTION •
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Contact KIRK & SIMAS with your crediotr rights or collection questions or schedule a consultation today.
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