Find a Bankruptcy Lawyer in Downey, California

Downey Bankruptcy Lawyers, CA

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In Downey, California, bankruptcy is a court procedure in which a person or business has some or all of their debts excused (or "discharged"), theoretically allowing them to start with a clean slate, and move on with their lives no longer drowning in debt (and hopefully having learned to better manage their use of credit in the process). Remember, though, that bankruptcy should not be viewed as a convenient way to get out of debt that you don't feel like paying back. It is meant to serve as an option of last resort for people and businesses faced with debt that they will probably never be able to pay back. The decision to file for bankruptcy can result in negative consequences, such as damaged credit ratings, which must be seriously weighed against the potential benefits.

Accordingly, you should speak with a good Downey, California bankruptcy lawyer. Your Downey bankruptcy lawyer can inform you of the costs and benefits of filing for bankruptcy, and give his or her professional opinion as to whether or not it's a good option, given your particular circumstances.

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Types of Bankruptcy in Downey, California

In Downey, California, there are 3 types of bankruptcy in common use: Chapter 7, Chapter 13, and Chapter 11. Because bankruptcy is a creation of federal law, the procedures governing bankruptcy in Downey, California will be similar anywhere else in the U.S. Chapter 7 bankruptcy involves liquidation of some of the debtor's assets to pay off as much of his or her debt as possible. Once the liquidation is complete, and the proceeds given to the creditors, the rest of the debt is discharged. Liquidation is essentially selling assets to the highest bidder. Only some of the debtor's assets have to be sold, and many classes of property are exempt, meaning that the debtor can keep them, including homes, cars, insurance policies, and retirement accounts. It should be noted that certain types of debt cannot be discharged through Chapter 7 bankruptcy, including student loans, child support payments, criminal fines, and recent taxes.

The other popular bankruptcy system in Downey is Chapter 13 bankruptcy. Under this system, the debtor's debts are restructured, instead of discharged. This involves creating a new repayment plan that the debtor will find manageable, given his or her income, and that will result in the creditors being paid in a reasonable amount of time. When a repayment plan is approved by a court, creditors are legally barred from attempting to collect under the original terms of their agreement with the debtor. Though Chapter 11 bankruptcy can be used by individuals, it is almost exclusively used by businesses. Similar to Chapter 13, Chapter 11 involves restructuring of debts, rather than complete discharge. The debtor is required to come up with a restructuring plan that lays out how it plans to cut costs, streamline operations, and pay its debts. The plan must then be approved by a vote of participating creditors.

While going through Chapter 11 bankruptcy, a business can continue operations, and its stock can continue to be traded.

How Can a Downey Bankruptcy Lawyer Help?

Filing for bankruptcy in Downey is a very important decision, and should not be made lightly. Before filing, one should consult with a good Downey bankruptcy attorney for advice.

55 Bankruptcy, Banking and Credit cases posted to LegalMatch lawyers in Downey

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Life in Downey

Downey, California is a city in Los Angeles County, California. Its current population of about 112,000 people.

Downey, California is best known as being the birthplace of the Apollo Program - the U.S. space program that ultimately landed men on the moon. Several aerospace corporations had facilities in Downey, California, such as Rockwell and Boeing. Some of these companies built the Apollo spacecraft and, later, many components of the Space Shuttle. These companies also employed many white-collar professionals, from engineers to Downey, California lawyers.

Nowadays, the economy of Downey, California is dominated by sectors such as healthcare, education, services, and government.

Thanks to its diverse and solid economy, the lawyers who live and work in Downey, California are able to handle a wide range of legal issues. If you need legal advice, a Downey, California attorney can help.

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