Consumer Bankruptcy

We represent all bankruptcy cases in a pragmatic, assertive manner. Regardless of case complexity, every client is treated with familiarity. We maintain satisfaction with our clients through personalized and informative service.

Consumer bankruptcy (also known as personal bankruptcy) and business bankruptcy are still widely available, despite the widespread notion that recent changes in bankruptcy law have made it all-but-impossible to file for bankruptcy. This isn’t true — the fact is, although the new bankruptcy laws passed by Congress in late 2005 makes the bankruptcy process (even) more complicated, most consumers and businesses are still eligible to file bankruptcy when needed. The Legal Objective law firm helps businesses, individuals, couples, and families file such bankruptcies.

Unforeseen Circumstances

The days of being embarrassed about filing for bankruptcy are long gone. In these difficult economic times, all it takes is one major illness in the family, an unforeseen accident, or a job lay-off to set a business, individual or family back in their finances to the point where they may not be able to "catch up" without filing a bankruptcy. The mortgage lending debacle in recent years has made the situation that much worse, with thousands of people losing their homes to foreclosure every day in the U.S.

Your Decision, Our Advice and Help

Consumer and business bankruptcy laws are very complex, and having an attorney guide you through the bankruptcy process can be extremely helpful. There is more than one type of bankruptcy to consider, and it’s best to seriously consider whether filing for bankruptcy is the right option for you or your business in the first place.

At Legal Objective, we have your best interests in mind, and we’ll be straightforward and thorough in explaining your options to you.

Types of Bankruptcy

Below is a brief summary of the three most common types of bankruptcies available. If you haven’t started thinking about these options at this point, now’s the time to start. Contact our office with any questions that you may have.

A "Chapter 7" Bankruptcy: Liquidation

Chapter 7 is the most common type of consumer bankruptcy. Chapter 7 cases are commonly referred to as straight bankruptcy or liquidation cases, and may be filed by an individual, corporation, LLC or a partnership. A Chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in Chapter 11 or 13. Instead, in a Chapter 7 bankruptcy, the trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets. Accordingly, potential debtors should realize that the filing of a petition under Chapter 7 may result in the loss of property. If the debtor has no non-exempt assets to liquidate, then no property will be lost and the debtor will receive a discharge from all dischargeable debts.

A "Chapter 13" Bankruptcy: Reorganization

If an individual is not eligible or if it is not in his/her best interest to file a Chapter 7 bankruptcy, the next available option may be to file a Chapter 13 bankruptcy. A Chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. Chapter 13 permits individuals to keep their property by repaying creditors out of their future income. It is not available to corporations or LLCs. After completion of payments under the plan, Chapter 13 debtors receive a discharge of most debts. A Chapter 13 bankruptcy is only available if the debtor’s unsecured debt obligations are under $336,900.00 and the debtor’s secured debt obligations are under $1,010,650.00.

A "Chapter 11" Bankruptcy: Restructuring

If an individual does not qualify for a Chapter 7 or Chapter 11 bankruptcy, he/she may still find relief under a Chapter 11 bankruptcy.

Chapter 11 is typically used for business bankruptcies and restructuring. It is not commonly used by individual consumers since it is far more complex and expensive to pursue, but it is still a viable consumer option. It allows businesses or individuals to reorganize themselves, giving them an opportunity to restructure debt and get out from under certain burdensome leases and contracts.

Carlsbad Office

2544 Campbell Place, Ste 100
Carlsbad, California 92009

Tel: (760) 431-2200
Fax: (760) 431-2244

San Diego Office

402 West Broadway, Ste 400
San Diego, California 92101
Tel: (619) 295-1300

 

Orange County Office

Tel: (949) 363-7100

 

Temecula/Riverside Office

Tel: (951) 341-5000