Chapter 11 & 13 Bankruptcy in Anaheim

Chapter 11 Bankruptcy

• Option for business bankruptcies and restructuring.
• Not used by individuals.
• Allows businesses to reorganize.
• Allows businesses to get out of leases and contracts.
• Business can operate – under the supervision of the Bankruptcy court.

Chapter 13

• Debt reorganization
• Helps you keep your property while making payments to clear your debt
• Includes the automatic stay – prohibits creditors from contacting you
• Allows you to make payments over a period of 3-5 years
• People who have a regular income
• Have disposable income to make payments
• Option for people who face a short-term financial loss:
  • Unemployment
  • Sickness
  • Unexpected crisis
• Other reasons to file for Chapter 13 bankruptcy:
  • Behind on home or car payments
  • Tax debts that cannot be discharged
  • Do not want to lose non-exempt property
  • Filed for Chapter 7 within the last 8 years; can only file for Chapter 7 once in an 8-year period.
  • Student loans can be included in a Chapter 13 payment plan.
• A Chapter 13 discharge will be sent to you when all payments in your plan have been made.

Non-Dischargeable Debts

• Secured debts cannot be discharged. You are responsible for:

  • Mortgage payments

  • A car loan

  • Child support payments

  • Alimony

 

 

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