Monterey Park is known for its many local owned businesses. Unfortunately, the ability to personal businesses has become increasingly difficult in our Southern California economy. This is especially true if you owe business and personal debts. This is why our Monterey Park bankruptcy lawyers often work with small business owners. Bankruptcy is a difficult decision made tougher if you are a business owner. However, there are many instances where Chapter 13 bankruptcy can help save personal and business finances from ruin.
Who Can File a Chapter 13
Chapter 13 is designed for an individual. Therefore, corporations and LLCs cannot file Chapter 13 bankruptcy. However, a person who is a sole proprietor or partner in a partnership can file bankruptcy. By doing so, they can help aleviate the businesses burdens.
How Debts Are Dealt With in Chapter 13
In Chapter 13, Debts are restructured into a payment plan. As a personal guarantor, you can include your personal debts as well as your business credit cards and business debts into the payment plan. To determine your plan amount, you and your Monterey Park Bankruptcy Lawyer will propose a payment plan to the bankruptcy trustee and judge. The trustee and judge will make sure the payment is fair and within the bankruptcy laws to confirm the plan.
Getting Credit in the Future with the Help of A Monterey Park Bankruptcy Lawyer
Many small business owners in Monterey Park question whether obtaining new business loans during and after bankruptcy is possible. The answer is that it is possible, however, it will be more difficult. First you must ask permission from the court if you are still in your Chapter 13 plan. Additionally, you will need to request the loan from a creditor. Obtaining the loan depends your ability to present present your business to the lender.
As a Monterey Park bankruptcy lawyer, one of the first things we remind clients of is that once you file your Chapter 13 bankruptcy, you will have a clean slate. Once you receive a discharge, you actually will be a better credit risk because you no longer have any debt. Moreover, you cannot file bankruptcy for a certain amount of time. Therefore, creditors will be willing to work with you. However, It is a good idea to be prepared to answer questions as to why you filed bankruptcy and why you are in a better situation. You will need to show why you are a good credit risk. A good way to prove this is to show that you made your bankruptcy plan payments, and that you have continued to pay your other monthly installments on time.
Ask a Monterey Park Bankruptcy Lawyer to Help you File your Chapter 13
As a Monterey Park bankruptcy lawyer who has represented many clients who also own small businesses in their personal bankruptcy filing, we recommend that you meet with us prior to making any bankruptcy decisions. We can help you to clear up your business and personal debt at the same time while also protecting your assets.
NOTE: This is for informational purposes only and does not constitute legal advice.