Bankruptcy Lawyers in Pasadena, CA:
Bankruptcy is the Federal process by which an individual or entity declares an inability to pay their debts. It involves the liquidation of the assets and the distribution of the resulting proceeds to creditors.
Under the Federal bankruptcy code there are several types of bankruptcies: Chapter 7, 11 and 13. Chapter 7 is the complete liquidation of the debtor’s assets.
Chapter 11 is the reorganization of the debtor’s business.
Chapter 13 is the workout of an individual debtor’s liabilities.
Generally, once a court declares the debtor bankrupt their assets are surrendered to a court-appointed trustee and the debtor is relieved of any further liability.
If you have more debts than you van pay and are considering filing bankruptcy, please contact our office for a free initial consultation.