If you are an individual looking for bankruptcy information right now, make sure you speak to a California Bankruptcy Lawyer that has experience in filing Chapter 7 and Chapter 13 bankruptcy. If you are a business owner or own multiple properties you must consult a bankruptcy attorney that has experience with Chapter 11bankruptcy as you will probably not qualify for Chapter 7 or Chapter 13 bankruptcy. When filing bankruptcy a consumer is subject to the “means test” since implemented with new bankruptcy laws in 2005. The means test is the basic measure to see if someone qualifies for a chapter 7, which will allow them to completely eliminate their unsecured debt like credit cards and medical bills or chapter 13, which is a repayment plan (typically pennies on the dollar). While there are many California bankruptcy attorneys to choose from, most bankruptcy attorneys in California mainly practice chapter 7 bankruptcy. If you are delinquent on your mortgage and want to save your home with bankruptcy you typically will need to file chapter 13 bankruptcy.

While debtor’s need to know their options to bankruptcy, like debt settlement, there are various reasons why someone may find it necessary to file bankruptcy. A good reason may be to avoid a wage garnishment or eliminate one’s personal liability in the event of a judgment or a lien filed against them. Additionally, if one is a homeowner in foreclosure and wants to save their home, a chapter 13 will allow them to repay their arrearages.  Also, debtors who are engaged in business, including corporations, partnerships, and sole proprietorships, may prefer to continue doing business. These people should consider filing chapter 11 bankruptcies. Under chapter 11, the debtor can seek an adjustment of their debts, either by reducing the debts or by extending the time for repayment of what’s owed.  Sole proprietorships may also be eligible for relief under chapter 13 of the Bankruptcy Code rather than the need for a chapter 11.

 As mentioned before, one of the main advantages of chapter 13 is that it provides individual debtors with an opportunity to save their homes from foreclosure by allowing them to “catch up” past due payments through a payment plan. Moreover, the court may dismiss a chapter 7 case filed by an individual whose debts are primarily consumer rather than business debts if the court finds that the granting of relief would be an abuse of chapter 7. 11 U.S.C. § 707. Basically, filing bankruptcy with a bankruptcy attorney is similar to filing your taxes with a good CPA. A good bankruptcy attorney knows how to save you money and protect your best interest. You do not want to be accused of bankruptcy fraud as it’s a federal offence.www.bankruptcyattorneyincalifornia.com