FAQs About Bankruptcy

Welcome to our Bankruptcy FAQ Page!

Frequently Asked Questions: Here at Holland Law Firm, we are here for you throughout the whole bankruptcy process. We hope that this FAQ helps answer your bankruptcy questions. Should you need further questions answered please contact us for the 1st time initial consultation. Don’t hesitate to reach out to us for guidance, we have filed over 2,000 bankruptcy cases. We have the experience and expertise to handle your case. Contact us today!

Chapter 7 is the liquidation chapter of the Bankruptcy Code. Chapter 7 cases are commonly referred to as “straight bankruptcy” or “liquidation” cases and may be filed by an individual, husband and wife, a corporation, or a partnership. Under chapter 7, a trustee is appointed to collect and sell all property that is not exempt and to use any proceeds to pay creditors. Most Chapter 7 Debtors DO NOT have assets over the exemption amounts that are provided for and their assets will not get taken by the Trustee and sold for liquidation purposes.

In the case of an individual or husband and wife, the debtor is allowed to claim certain property as exempt. Property that is not exempt is taken by the trustee, sold and the money used to pay creditors. In exchange for this, the debtor gets a discharge, which means that the debtor does not have to ever pay back most types of debts. Corporations and partnerships do not receive discharges. Consequently, any individuals legally liable for the partnership’s or corporation’s debts will remain liable. If a person is also liable for a corporation’s debts, individual bankruptcy may be required as well as the corporation or partnership bankruptcy to protect the individual person.

Chapter 13 is the debt repayment chapter for individuals with regular income whose debts do not exceed a total of $ 1,677,125 (Secured: $ 1,257,850, Unsecured $ 419,275.), including individuals who operate businesses as sole proprietorships. It is not available to corporations or partnerships.

Chapter 13 generally permits individuals to keep their property by repaying creditors out of their future income. Each chapter 13 debtor proposes a repayment plan which must be approved by the court. The amounts set forth in the plan must be paid to the chapter 13 trustee who distributes the funds for a percentage fee. Many debts that cannot be discharged can still be paid overtime in a chapter 13 plan. After completion of payments under the plan, chapter 13 debtors receive a discharge of most debts.

A consumer can file for bankruptcy if they are struggling to pay their debt. There are a lot of reasons that prevent people from paying their debt, or that make it difficult to make ends meet such as: losing their job, illnesses, divorce, and any other financial circumstances.

Consumers can file either Chapter 7 or Chapter 13, but it also has its pros and cons. If you are a consumer that needs help with bankruptcy, let Attorney Ron Holland assist you in making your decision towards filing a bankruptcy case.

If you are a small business proprietor and have unmanageable debts, you can file Chapter 7 or Chapter 13 bankruptcy to help you out.

However, there are lots of things you have to consider depending on the nature of your business once you file bankruptcy, like how much your debt and what assets you have, and if you still intend to continue running your business.

Ron Holland covers the following  areas:

Roseville, Rocklin, Auburn, Citrus Heights, Antelope, North Highlands, Granite Bay, Fair Oaks, Carmichael, Sacramento, Folsom, Rancho Cordova and the surrounding counties.

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