If you’re considering bankruptcy, it’s important to understand the different types.  There are two main types of bankruptcy: consumer bankruptcy and business bankruptcy.  Within these categories are two different bankruptcy filing options.  Let’s begin by looking at consumer bankruptcy.

Consumer bankruptcy offers an individual the option of filing for personal bankruptcy to reduce or eliminate debts.  There are two different types of consumer bankruptcy: Chapter 7 and Chapter 13. Under Chapter 13 bankruptcy, your debts will be consolidated, possibly reduced, and a repayment plan will be devised.  The repayment period is typically 3-5 years, although this will depend on a variety of different factors.  Under Chapter 7, most (or all) of your debt will be eliminated (discharged) and you will begin with a fresh, clean slate.

Business bankruptcy offers a business the option of filing for corporate bankruptcy.  There are two main types of business bankruptcy: Chapter 7 and Chapter 11.

Before filing for bankruptcy, determine whether your small business is a corporation, partnership, or sole proprietorship.  Corporations, partnerships, and LLCs are legal entities that are separate from their partners, managers, and shareholders.  These types of businesses can file Chapter 7 (liquidation) or Chapter 11 (reorganization) bankruptcy.  If your small business is a sole proprietorship, it is tied to the owner and cannot legally be classified as a business entity.

Under Chapter 11, the business is “reorganized,” debts are consolidated (some may be liquidated), and a repayment plan is devised.  In both Chapter 11 business bankruptcy and Chapter 13 personal bankruptcy, a repayment plan is devised, and debts are consolidated.

Chapter 7 business bankruptcy is known as “liquidation.”  In this situation, business assets and debts are liquidated.  Unlike an individual who files for Chapter 7, corporations don’t get their debt discharged (eliminated).  Instead, a bankruptcy trustee will handle asset liquidation for the business.  Chapter 11 business bankruptcy is usually more expensive than Chapter 7 because it is more complex and requires a larger time commitment.

Chapter 13 bankruptcy may allow you to overcome a insurmountable debt load without requiring you to give your belongings to creditors. It takes between three and five years to complete, and it is available for both indebted consumers and sole proprietorships.

Debt Relief for Individuals and Sole Proprietorship Businesses

In Chapter 13 bankruptcy all of your debts are reorganized into one monthly payment. This occurs through negotiations during a Chapter 13 bankruptcy court hearing in San Antonio where you, your lawyer, your creditors and a Chapter 13 trustee can negotiate a reorganization plan.

For three to five years, you will send your monthly payments to the Chapter 13 trustee, who will distribute payments to the creditors. At the end of the three to five year period, all your debts will be discharged.

Secured Debts in Bankruptcy

Secured debts, like back liens taxes, mortgages or car payments, can sometimes be altered through this plan. The dollar amount, however, owed on most home mortgages and consumer auto loans will not be decreased. But, by paying only a percentage owed on unsecured debt may allow you to free up needed income and permit you to catch up on payments to avoid foreclosure or repossession in San Antonio.

Limitations do apply to those who choose to file a Chapter 13 bankruptcy in San Antonio. You may not be eligible if the money you owe exceeds a certain dollar amount. If you are unable to file under Chapter 13 or consumer Chapter 7 bankruptcy, you may need to consider business Chapter 7 bankruptcy or Chapter 11 bankruptcy.

A local San Antonio bankruptcy lawyer can help you determine which approach is best for you.

To learn more about bankruptcy in the San Antonio area, you can schedule an appointment for a free initial consultation with one of the members of our legal team. Just call (210) 807-4252 or contact our offices online.

Chapter 13 and Chapter 11 bankruptcies in San Antonio have certain key similarities that can cause mislead anyone who doesn’t specialize in bankruptcy.

Who Can File for Chapter 11 and Chapter 13 Bankruptcy?

Chapter 11 bankruptcy is available for businesses and individuals who possess a very large amount of debts and income. Chapter 13 bankruptcy is available for almost all consumers as well as sole proprietorships; however there are debt/income limits for eligibility. These limits often change every year.

Chapter 11 Bankruptcy in San Antonio-Creditors Vote

In both Chapter 11 and Chapter 13 bankruptcy, the debtor and the debtor’s bankruptcy lawyer or law firm develop a plan to reorganize and consolidate the debt. In Chapter 13 bankruptcy in San Antonio, the creditors accept the plan assuming it meets certain legal standards. In Chapter 11 Bankruptcy in San Antonio, the creditors vote to determine whether they will accept or reject the plan.

Under Chapter 11 bankruptcy, if the creditors reject the plan, the debtor can come up with a new plan. The judge can force the creditors to accept the debtor’s plan or the negotiations may simply fail. If negotiations are unsuccessful, the business will either have to file for business Chapter 7 bankruptcy, or, the case may be dismissed.

To learn more about bankruptcy in the San Antonio area, you can schedule an appointment for a free initial consultation with one of the members of our legal team. Just call (210) 807-4252 or contact our offices online.

The stress of insurmountable debt can swiftly become overwhelming. If creditors keep harassing and your debt is growing faster than you can pay it back, you may want to consider hiring a San Antonio bankruptcy lawyer.

What is Chapter 7 Bankruptcy?

In Chapter 7 bankruptcy, all of your legally dischargeable debts are wiped out. In exchange you must surrender your “non-exempt” assets and forfeit the proceeds to be split among creditors. Many assets, however, qualify as “exempt.” Exempt assets are protected assets that individuals get to keep. In many cases, individuals who file for Chapter 7 bankruptcy in San Antonio do not end up surrendering assets.

Know Which Assets Are Exempt

Exempt assets are assets individuals get to keep and are not affected by the filing of a bankruptcy in San Antonio. The rules of exemption are complicated. Your exemptions will depend on whether or not you own a home, the duration for which you have owned the home and the length of time you have lived in the State of Texas. In most instances, individuals are able to keep their home, often depending on whether or not they are able to catch up with their mortgage payments to prevent foreclosure.

Why Consumers File for Chapter 7 Bankruptcy?

While bankruptcy laws have changed over the years, the needs of individuals filing for bankruptcy in San Antonio have not. Contrary to the claims of lenders, few bankruptcies result from financial irresponsibility. Almost all bankruptcies are triggered by forces beyond the person’s control, like unexpected medical bills, job layoffs or tough economic times.

Chapter 7 bankruptcy in San Antonio is a good option for consumers who don’t have a large amount of non-exempt assets. If you have many assets, you may want to contemplate filing for Chapter 13 bankruptcy instead. Talk to our local bankruptcy lawyer in San Antonio to find out which option is best for you.

To learn more about bankruptcy in San Antonio, you can schedule an appointment for a free initial consultation with one of the members of our legal team. Just call (210) 807-4252 or contact our offices online.

The current economic environment has made it more and more difficult for businesses to keep up with their overhead and debts. Unfortunately for some, the overwhelming debt is too much and the company is no longer able to stay in business.

How Business Liquidation Works

In Chapter 7 bankruptcy, the bankruptcy court selects a trustee to liquidate the business’s assets and distribute the proceeds to the business’s creditors. After the process is completed, the business ceases to exist and so do the debts.

Although Chapter 7 bankruptcy means the business has to shut down, it does have certain advantages, it announces the end of operation of the business and the creditors will be halted from undertaking collection against the business.

Business Bankruptcy Alternatives

A business approaching bankruptcy can have its local bankruptcy lawyer or law firm file for Chapter 7, Chapter 11 or Chapter 13 bankruptcy. Chapter 7 is the sole option that involves forfeiting the business assets to its creditors. Alternative forms of bankruptcy allow a bankruptcy attorney to restructure the business, pay back most or part of the debt, and keep the business operational.

To learn more about bankruptcy in San Antonio, you can schedule an appointment for a free initial consultation with one of the members of our legal team. Just call (210) 807-4252 or contact our offices online.

The economic downturn has forced many businesses large and small to file for Chapter 11 bankruptcy. Chapter 11, known also as Reorganization, is a complicated legal process requiring an experienced bankruptcy attorney.

Chapter 11 Bankruptcy in San Antonio

In Chapter 11 bankruptcy, the filing business makes an attempt to come up with a carefully crafted payment plan to reorganize its debt. This payment plan is presented to creditors in bankruptcy court in San Antonio. The creditors then cast ballots to vote on whether or not to accept or reject the plan. If there is an agreement, the plan becomes a new contractual agreement between the parties.

If they disagree, your San Antonio bankruptcy lawyer can attempt to come up with a new plan, or the bankruptcy court can impose the plan on the creditors or the negotiations may simply end up failing. A bankruptcy attorney with the necessary experience can assist you reach a Chapter 11 bankruptcy reorganization plan that creditors or judges will accept.

Bankruptcy Reorganization-What’s Involved?

The Chapter 11 reorganization will most likely involve an attempt to reduce the value of the business’s debts to match the value of the business‘s assets. Debts in excess of the value of the business assets are treated as unsecured, and a large amount of them can be discharged. Secured debts can also be renegotiated or litigated to achieve a decreased interest rate and for a longer repayment duration.

To learn more about bankruptcy in the San Antonio area, you can schedule an appointment for a free initial consultation with one of the members of our legal team. Just call (210) 807-4252 or contact our offices online.