Chances are that you have heard many of the myths and half-truths floating around concerning the bankruptcy process in California. One of the misconceptions we encounter most frequently concerns eligibility for the Chapter 13 process. Here at Weintraub & Selth, APC, we believe that there is a best-case debt relief option available for every situation. For you, even if you are representing a business, that option could potentially include Chapter 13.
Understanding your debt relief options is the first step towards choosing the correct one. We provide an overview of the Chapter 13 process on our main bankruptcy website. The important milestones include:
- The court halts creditor contact and collection upon your filing for bankruptcy
- You build a debt plan
- You repay your modified debt and receive a discharge on the balance
This process might take several years, and your experience is likely to be significantly more complicated than you might assume from these three simple steps. In addition, while it is true that this type of bankruptcy might not be available to many types of businesses, there is one significant exception.
If you own a business outright or with another person, then you could be eligible for Chapter 13. Under certain conditions, we are able to help clients file personal liability bankruptcy for their own responsibilities in sole proprietorships and partnerships.
You should not lose hope if you have a different type of business structure. You might also have viable options if you are the owner of a corporation or LLC, such as Chapter 11. Please continue to our main site to learn more.