Bankruptcy Lawyer in Los Angeles and San Jose
The Coronavirus pandemic has turned much of the world upside down. The U.S. economy was brought to a virtual standstill causing many individuals to lose their jobs and many businesses to shutter their doors. A prime example of the impact of the Coronavirus on the U.S. economic is the news that California Pizza Kitchen filed for bankruptcy. “The unprecedented impact of COVID-19 on our operations certainly created additional challenges," said Jim Hyatt, CEO of California Pizza Kitchen, according to People.com. California Pizza Kitchen is not the only business forced to file for bankruptcy due to the impact of COVID-19. For example, CEC Entertainment, the parent company of Chuck E. Cheese, also filed for bankruptcy. If you are struggling financially as a result of the Coronavirus pandemic and are contemplating bankruptcy, now is the time to contact RS Law Offices and speak with an experienced Los Angeles bankruptcy lawyer. The sooner you speak to a bankruptcy attorney in Los Angeles, the sooner you can proactively address your mounting debts and stop the threats of foreclosure from your mortgage company and harassing phone calls from creditors. Contact RS Law Offices today to schedule a free, confidential case review. When you meet with a knowledgeable bankruptcy attorney with our law firm, we will discuss your specific situation and asses the best path forward. Depending on your unique situation, it may make sense to file Chapter 7 bankruptcy, Chapter 11 bankruptcy, or Chapter 13 bankruptcy. Let's take a look at each option. Why? Because understanding all aspects of filing for bankruptcy is critically important and it is imperative that you retain the services of a Los Angeles lawyer who possesses in-depth knowledge of the various forms of bankruptcy to ensure you receive the best legal advice
Overview of Chapter 7 Bankruptcy
Chapter 7 bankruptcy can be utilized by individuals who live, own property or own a business in the United States, including California residents. Under Chapter 7 bankruptcy, you are allowed to retain certain possessions since they will be treated as "exempt" from the bankruptcy proceedings. In California, the laws related to exempt property are quite complex, primarily because there are two different sets of exemptions you need to consider. The complexities surrounding exempt property under California law is a big reason why you should retain the services of a knowledgeable and experienced bankruptcy lawyer in Los Angeles and San Jose. In addition to two different sets of exemptions, California is known as an “opt-out” state, which basically means that exemptions available under federal law are unavailable. So, if you have resided in California for two or more years, you will need to decide between the exemptions available in Section 703 of the California Code of Civil Procedure or Section 704 of the same Code. Section 703 Exemptions Section 703 is most often used by individual who do not own a home or other forms of real estate. Why? Because Section 703 generally provides more protections for personal property, as outlined in Code of Civil Procedure §703.140(b). Section 704 Exemptions Section 704 is most often used by individuals who want to protect personal property in their "homestead." The homestead exemption applies to your primary residence. It is important to note that Section 704 does not protect investment property like rentals or a vacation home as outlined in California Code of Civil Procedure § 704.010.
Overview of Chapter 11 Bankruptcy
Chapter 11 bankruptcy is the type of bankruptcy you most often read about in the news. For example, the aforementioned California Pizza Kitchen filed for Chapter 11 bankruptcy. It is often the form of bankruptcy used by large corporations. Why? Because Chapter 11 is often referred to as the “reorganization bankruptcy" whereby a business can continue operating but is provided time to work on restructuring their finances and debts. When a Chapter 11 bankruptcy is filed, creditors are prohibited from continuing their collection efforts. However, the prohibition only lasts for four months. This is supposed to give the individual or business time to come up with a viable reorganization plan, though the prohibition period can be extended up to 18 months.
Overview of Chapter 13 Bankruptcy
Chapter 13 bankruptcy is often referred to as the “wage earner” form of bankruptcy. Why? Because with Chapter 13, your debts are not wiped out entirely. Instead, you restructure your debt in a way so that you are able to pay it off by making monthly payments over the course of, typically, five years. It is important to note that each individual who files for Chapter 13 bankruptcy has a unique set of challenges and financial circumstances. As a result, the outcome of Chapter 13 bankruptcy proceedings will vary from individual to individual. Businesses are not allowed to file for Chapter 13 bankruptcy. However, an exception is for self- employed individuals who own a small business. They can file for Chapter 13 bankruptcy, but they must file for bankruptcy in their name and not the name of the corporate entity. Bankruptcy – can give you the advice and representation you need when facing such a situation.
