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Call us nowor use the form below.Frequently Asked Questions about BankruptcyQ: Why are so many consumers filing bankruptcy? A: Americans generally have overextended themselves by using too much easily accessible credit to finance overspending, combined with lack of savings. With no financial safety net, sudden crises such as medical emergencies, job losses or failed businesses, death or disability of spouses, or divorce can result in insurmountable debt. On average, a typical bankruptcy debtor is employed and middle-aged with a high school education and relatively low income. Q: What alternative courses of action are there to filing bankruptcy when facing overwhelming debt? A: Short of bankruptcy, a debtor may enter into mediation with creditors or negotiate workout agreements to extend due dates, lower interest rates, partially forgive debt or alter other terms. A debtor may execute an assignment of property for the benefit of creditors (ABC), wherein the debtor puts assets in the trust of a neutral third party to pay creditors. A business debtor can sell the business, negotiating the satisfaction of debt as part of the deal. Other creative options to bankruptcy exist. |
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There were nearly 1.7 million bankruptcies filed in 2003, up 7.4% from the 1,547,669 filings in 2002. In fact, bankruptcy fillings have increased nearly 100% since 1994. To help sort your way through the complicated maze of overcrowded bankruptcy courts, you need the assistance of knowledgeable legal advocates, with years of experience and demonstrated trustworthiness. |
Many people fear they no longer can seek debt relief under the current bankruptcy laws. But bankruptcy is still a viable alternative. The bankruptcy lawyers at Weintraub & Selth, APC, are passionately committed to helping you achieve the best possible financial outcome in your bankruptcy case.
The firm offers the full range of bankruptcy solutions, including Chapter 7 bankruptcy Chapter 13 bankruptcy, and Chapter 11 bankruptcy. Since we handle all types of bankruptcy, our lawyers will find and provide you with the best solution for you, not the one which is best for the firm, which may be the case with other lawyers who do not practice under all chapters of the Bankruptcy Code.
Bankruptcy - An Overview
Bankruptcy is a legal vehicle that provides relief to individuals and businesses in serious financial trouble and protects their creditors to the extent possible. Generally, the bankruptcy process assesses the debtor's assets and liabilities and provides a structure within which the debtor is allowed to keep some property and ordered to satisfy as many eligible debts as possible, according to an order of priority established by law. Remaining debts are discharged, except those of certain types, like domestic support orders, debt obtained by fraud and most tax debt.
The traditional stigma of bankruptcy has faded and been replaced by the view that it is a fresh start after a time of trouble. Most bankruptcy debtors have experienced unexpected and extreme financial shock, such as that caused by sudden events such as job loss, business failure, death, divorce or illness.
In such cases, filing bankruptcy may be the right answer. If you are facing serious financial challenges, it is very important to seek the counsel of an experienced bankruptcy attorney to help you to assess your legal options.
Consumer Bankruptcy
When an individual falls desperately behind in his or her debt payments, one option may be to declare bankruptcy, a legal proceeding in a federal bankruptcy court that relieves the debtor of some or all of his or her debts. While bankruptcy may not be the best option for everyone, in the right situations, it can provide people with a fresh start. A lawyer experienced in bankruptcy law can advise you as to whether bankruptcy may be the right move for you.
Commercial Bankruptcy
Like a consumer, a business sometimes finds itself in the uncomfortable position of being unable to pay its debts. One solution is to file for bankruptcy, a legal process in federal bankruptcy court that releases the business from the obligation to pay all or some of its debts. A lawyer experienced in bankruptcy can advise business owners about whether bankruptcy is right for them.
Credit Counseling Requirement in Bankruptcy
In 2005, Congress passed and the president signed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), a bankruptcy reform law. One of the new requirements BAPCPA imposes on a new bankruptcy debtor is to receive credit counseling from an approved credit counseling agency before the bankruptcy filing. A lawyer experienced in consumer credit and bankruptcy law can help educate debtors about these new counseling requirements.
Surviving the Emotional Effects of Bankruptcy
No matter what circumstances ultimately led to filing bankruptcy, both the practical and the emotional impact on the debtor will be enormous. Confronting the emotional and psychological issues surrounding bankruptcy and reaching an understanding and acceptance of the situation are essential to rebuilding and maintaining a successful financial life. An experienced bankruptcy attorney can guide a debtor through the complicated legal, financial and emotional maze of bankruptcy and steer him or her in the right direction for the future.
Bankruptcy Resource Links
American Bankruptcy Institute Consumer Corner
Legal Information Institute
FindLaw Guide - U.S. Bankruptcy Courts
Official Bankruptcy Forms
AnnualCreditReport.comŽ
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For more information, contact a Southern California bankruptcy lawyer at Weintraub & Selth, APC
Our bankruptcy attorneys serve clients in Southern California, including Los Angeles, Santa Monica, West Los Angeles, Sherman Oaks, Culver City, Long Beach, South Bay, Westwood, Brentwood, Burbank, Beverly Hills, Woodland Hills, and Van Nuys.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
