Bankruptcy
Filing for bankruptcy is a complex process with lasting consequences. While individuals are not required to consult legal counsel when petitioning for bankruptcy, the U.S. Bankruptcy Court strongly recommends hiring an attorney. Taking preemptive action ensures you avoid potentially disastrous and costly errors.
The Law Offices of Ollie P. Manago has 20 years experience assisting individuals and businesses through the bankruptcy process. We examine your financial records to determine whether bankruptcy is right for you and help you comply with Bankruptcy Code regulations. California bankruptcy attorney Ollie Manago regularly works with clients filing for the following:
Chapter 7 bankruptcy
Frequently referred to as liquidation, Chapter 7 is the most common form of bankruptcy in the United States. It allows petitioners to sell assets and divide the proceeds equally among creditors. All remaining eligible debts are discharged and the debtor is free to start over without large amounts of debt looming overhead.
The majority of Chapter 7 petitioners are individuals, families, and small businesses. Potential filers take a means test to see if their income meets or exceeds the Chapter 7 threshold set forth in the Bankruptcy Abuse Prevention and Consumer Protection Act. If eligible, petitioners complete all necessary paperwork and attend a 341 meeting, where creditors have the opportunity to ask questions about the debts incurred. A court-appointed bankruptcy trustee oversees the liquidation of assets and distribution of the generated funds.
Chapter 11 bankruptcy
Primarily filed by businesses and corporations with excessive debts, Chapter 11 bankruptcy gives petitioners the ability to keep their businesses open while paying creditors. Chapter 11 petitioners must propose a payment plan with a set, achievable time table for reducing or eliminating debt. If approved, filers then make payments in accordance with their reorganization plan.
Chapter 11 bankruptcy is significantly more complicated than Chapter 7 or Chapter 13 and is not right for all companies. You should consult financial and legal advisors to determine whether filing for Chapter 11 bankruptcy is the best choice for your business.
Chapter 13 bankruptcy
Chapter 13 bankruptcy is the second most common form in the United States. Typically filed for by individuals or small businesses that exceed the income cap of Chapter 7 bankruptcy, Chapter 13 bankruptcy employs a payment structure where the petitioner pays back debts to creditors by using a portion of each paycheck. This process generally lasts anywhere from three to five years and allows debtors to keep their assets as they work with a court trustee. Chapter 13 bankruptcy offers certain advantages to debtors, such as the following:
- The prevention of property foreclosure
- The ability to repay debts through reduced payments
- The right to discharge certain debts that were exempt under other chapters, such as medical bills
For a helping hand
Located close to Miracle Mile and the Staples Center, The Law Offices of Ollie P. Manago serves businesses, families, and individuals in Orange, San Bernardino, Los Angeles, and Riverside Counties. For clients unable to reach our office during the regular business day, we have evening and weekend hours available by appointment.
Contact our Wilshire Blvd. office for a free initial consultation with a qualified lawyer.
¿Se habla español? Our law firm assists Spanish-speaking clients in Southern California.
