There are few situations more stressful than facing overwhelming debt. Whether this debt affects your individual finances or threatens to bring your company to the point of insolvency, seeking out a reasonable alternative is of paramount importance. Filing for bankruptcy can be a useful way to protect yourself from looming debt.
A bankruptcy case can offer many immediate and long-term benefits. A Los Angeles bankruptcy lawyer could help you obtain relief from overwhelming debt. A skilled attorney could work with you to understand your goals, choose a bankruptcy plan, and submit a complete and accurate petition to the court.
Benefits of Seeking Bankruptcy Protection
Filing a request for bankruptcy protection comes with two main benefits. First, any application for bankruptcy relief that is valid on its face will trigger an automatic stay. According to 11 United States Code § 362, this stay puts an immediate halt to all collection efforts. Additionally, the court will send out a notice to all creditors that any future attempt to collect on these debts is invalid.
The second benefit is the discharge of most forms of debt. With rare exceptions such as student loans back taxes, a successful bankruptcy case can see a total discharge of debts. This can provide individuals, couples, and companies with a fresh financial start. Those considering bankruptcy should speak with a seasoned lawyer about the advantages of this process.
Choosing the Correct Debt Relief Plan
While all bankruptcy plans have the same two primary goals, the means of achieving these goals will significantly differ. Individuals and couples have two main paths forward. A Chapter 7 declaration could see the liquidation of some assets to satisfy creditors. A court-appointed trustee will oversee this process. By contrast, a Chapter 13 plan will place debtors on a payment plan, and they may choose how to obtain the funds to make those payments.
Companies can also pursue debt relief through a Chapter 7 bankruptcy. A Los Angeles attorney could help debtors understand the nuances of each type of bankruptcy.
Submit a Complete Application to a Los Angeles Bankruptcy Court
Once an individual, couple, or business chooses their bankruptcy plan, they must form a comprehensive application. This includes a list of all creditors and detailed financial information. Individuals and couples must also submit a certification of completion from an approved credit counseling course.
Submitting this information is crucial to the success of any bankruptcy petition. While a court will accept a partial application for an emergency petition, a case can never proceed without a complete financial package. A nearby lawyer could assist parties in compiling and submitting this essential data in their bankruptcy case.
Reach Out to a Los Angeles Bankruptcy Attorney Today
Filing for bankruptcy protection can be a powerful tool for individuals, couples, and businesses to escape from overwhelming debt. However, obtaining this protection requires a detailed understanding of the various bankruptcy plans and a comprehensive list of financial data.
Let a Los Angeles bankruptcy lawyer take the lead in this process. We could help you identify your goals and formulate a plan that can lead to immediate financial relief and long-term stability. Contact our team today to get started.