Avoid Mistakes When Planning and Filing Virginia Bankruptcy Cases

The best-planned bankruptcy cases go unnoticed. A few debtors glide through the system without attracting attention and receive full discharges in record time. Luck is not involved, but rather each successful debtor begins planning strategically a few weeks or months in advance. These debtors know something that you don’t.

Free - 2010 Bankruptcy Strategies Explained

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If you are thinking about filing Chapter 7 or Chapter 13 bankruptcy, you are not alone. Complete the form below to contact a sponsoring bankruptcy lawyer. Ask all questions you deem important without cost or obligation of any kind. Free help is only a few minutes away.

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California Bankruptcy - Chapter 11

A California bankruptcy filed under chapter 11 laws is frequently referred to as "reorganization". Chapter 11 is more complex than other chapters and offers a wider range of options. Ch. 13 also provides reorganization but is restricted to allow only individual filers, subject to limits on total debts, income, and plan terms. A California bankruptcy under Ch. 13 is sometimes referred to as a wage earner plan.

A chapter 11 case begins with the filing of a petition. The petition may be a voluntarily filed by the debtor or filed by creditors. The code provides specific conditions which limit involuntary petitions filed by creditors. The standard petition form identifies the debtor by a variety of personal information all of which are subject to cross referencing and verification and must describe the proposed plan of reorganization. Voluntary petitions may elect qualification as a small business as provided by 11 U.S.C. 101(51)(C) or 11 U.S.C. 1121(e). Small business classification permits streamlined administration, by combining administrative hearings and allowing alteration of statutory deadlines and waiting periods.

California Bankruptcy

Once filed, the petitioner automatically becomes a debtor-in-possession as described in 11 U.S.C. 1101. As a term of legal art, this term is defined by statute and includes a wide assortment of responsibilities and privileges. In chapter 11 filings, the debtor retains possession of assets. The debtor also is empowered to dispose assets until the plan of reorganization is confirmed, dismissed, converted to Ch. 7, or preempted by appointment of a trustee by court order. While a California bankruptcy case under chapter 11 is pending, a debtor-in-possession is authorized to continue business operations, pay debts, pay expenses, and limit or suspend payments to special defined classes of creditors.

Normally a trustee is not appointed in chapter 11 California bankruptcy. A debtor-in-possession continues operation of the business and/or personal affairs while assuming many roles traditionally performed by a trustee in consumer cases. 11 U.S.C. 1107(a). The debtor-in-possession prepares the plan, responds to creditor motions and is liable (including criminal liability) for compliance with applicable laws. In almost all California bankruptcy cases filed under chapter 11, debtors are represented by an attorney. Anyone who files a California bankruptcy case under chapter 11 potentially receives the greatest range of options, which in turn, requires time intensive legal expertise to receive these benefits.

Choosing the best chapter depends on personal goals. Each debtor's financial history is unique. Each chapter provides for different treatment of arrearages, payments, if any, property retention, and the time required under federal supervision. Success begins with a thorough understanding of all options available.

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