Bankruptcy
Is bankruptcy the right choice?
West Hills Law, LLC is a Debt relief agency with an office in McKees Rocks, PA helping individuals file for relief under the Bankruptcy Code. Let us help you determine if this is
the right choice for you.
Contact
us for a free consultation
today!
Individuals may file for bankruptcy
in a federal court under Chapter 7 or
Chapter 13 ("straight bankruptcy", or liquidation).
When a troubled business is badly in debt and unable to service that
debt it may file (or be forced by its creditors to file) for bankruptcy
in a federal court under Chapter 7. Chapter 11 permits
reorganization under the bankruptcy laws of the United States.
Chapter 11 bankruptcy is available to every business, whether organized
as a corporation or sole proprietorship, and to individuals, although
it is most prominently used by corporate entities.
Chapter 7 Bankruptcy:
A Chapter 7 Bankruptcy is what most
people think of when they hear the word bankruptcy. In a chapter 7 bankruptcy,
all of your dischargeable debts are wiped out. In most cases that we
file, the debtor does not lose any of their possessions. This
“fresh start” allows hundreds of thousands of Americans to live
without the fear and anxiety of living paycheck to paycheck.
Chapter 13 Bankruptcy:
A Chapter 13 Bankruptcy is a very powerful
tool to stop foreclosure, repossession, and even wage garnishment. The
bankruptcy laws are federal laws that are intended to help consumers
have a “fresh start.” This fresh start is designed to eliminate
debts and/or repay them under the protection of the bankruptcy court.
A Chapter 13 bankruptcy or consolidation is designed to allow the debtor
to repay his debts over a period of three to five years.
Chapter
11 and 7 Bankruptcy for Businesses:
When a business is unable to service
its debt or pay its creditors, the business or its creditors can file
with a federal bankruptcy court for protection under either Chapter
7 or Chapter 11.
In Chapter 7, the business ceases operations,
a trustee sells all of its assets and then distributes the proceeds
to its creditors. Any residual amount is returned to the owners of the
company. In Chapter 11, in most instances the debtor remains in control
of its business operations as a debtor in possession, and is subject
to the oversight and jurisdiction of the court.
