Chapter 13 bankruptcy in Ontario

Our skilled team of bankruptcy attorneys is committed to working hard on your behalf throughout the duration of your case, despite the fact that formal bankruptcy proceedings through the court system can become complicated. Due to our extensive experience working with clients in and around the city of Ontario, we have the knowledge and professionalism necessary to effectively plan your case, assisting you in navigating through this difficult time and putting you in the best possible position to begin rebuilding your financial life.

Making the decision to file for bankruptcy in order to resolve your financial troubles is a significant decision. In most cases, bankruptcy should only be considered after you've exhausted all other alternatives. While the procedure has the potential to deliver significant benefits, it also has certain unintended drawbacks.

The most major negative effect is that it can negatively impact your credit for a period of seven to ten years. Moreover, it may make it more difficult for you to secure certain work possibilities in the future. However, in other cases, bankruptcy is the only alternative available to a person.

There are several signs that you may need to file for bankruptcy, including: • There is no foreseeable way that you will be able to resolve your debt problems in less than five years; • You are only able to make minimum payments on your bills; • You are paying overdraft fees every month; • You are receiving calls from debt collection agencies on a regular basis; and • You have spent more than the maximum amounts allowed on your credit cards.

Understanding Your Bankruptcy and Reorganization Alternatives

Personal bankruptcy can be classified into two types: Chapter 7 and Chapter 13 bankruptcy.

• Bankruptcy under Chapter 7: This type of bankruptcy allows debtors to discharge all or a portion of their debt once their liquid assets have been utilised to satisfy some of their creditors, depending on the circumstances. The individual has to demonstrate that their income is less than the median family income in the state in which they live to be considered for this programme. A person who fails the "means test" is automatically disqualified from filing for Chapter 7 bankruptcy.

In a Chapter 13 bankruptcy in Ontario, debtors are given the opportunity to repay all or a portion of their debt through a repayment plan that lasts three to five years, depending on their circumstances. An individual filing for bankruptcy must submit a suggested plan for how he or she expects to repay his or her creditors before a bankruptcy judge during a bankruptcy hearing. If the plan is authorised, the individual will be able to carry it out. After the project is completed, any leftover debt is forgiven.

Small firms and individuals who file under Chapter 11 must follow a different and more streamlined set of procedures than those who file under Chapter 7. In any case, a Chapter 11 filing necessitates the hiring of a business-savvy attorney who can devise a reorganisation plan and deal with any combative issues that arise.

Economic turmoil can be stressful, but there are alternatives that allow you to get out from under a mountain of debt while keeping most, if not all, of your valuable possessions. To learn more about what we can do to help you or your business get a fresh start, contact the Los Angeles Bankruptcy Attorney Group today.