As a Pasadena Bankruptcy Attorney, new clients requesting Bankruptcy relief appears to be stronger than ever, and includes those with multi-million dollar estates. The prospect of getting rid of all your unsecured debt through either a Chapter 7, Chapter 13, or Chapter 11 Bankruptcy is becoming more and more appealing for a Los Angeles population that continues to struggle with high unemployment, high under-employment, and small business closures due to a weakened consumer demand for those too cash-strapped to spend.
A Chapter 7 typically helps someone who does not have a home, or has little equity and is not making a high salary at this time. Although many people were making significantly more money just a year ago, a Bankruptcy filing really only focuses on the last six months of earnings in order to determine your annual salary. As a result, many more people qualify for a Chapter 7 Bankruptcy than before.
A Chapter 13 Bankruptcy seems to fit those who want to keep their home, but are far behind in their payments and still make a decent wage, but have become overwhelmed by credit card debt or have had to take out a second mortgage that they can no longer afford. A Chapter 13 can strip away a second mortgage as well as the credit card debt, leaving the debtor to only pay one monthly payment that seeks to pay their arrearages on their mortgage without all of the extra debt payments that make it impossible to get by after all the bills have been added up.
A Chapter 11 is not just for businesses. Individuals can file too. For those who have debt more than approximately 1 million 10 thousand dollars, which happens more than you might imagine, it gives that person a chance to reorganize much like a Chapter 13 when their prior successes have been severely damaged by a merciless economic downturn.
If financial pressures are getting the best of you, come speak to an experienced Bankruptcy Attorney in order to find what your best solution truly is. Whether it is a Chapter 7, Chapter 13, or Chapter 11, you can be well on your way to realizing the true purpose of the Bankruptcy Laws: To get a fresh start!
