Find a Bankruptcy Lawyer in Palo Alto, California

Find the right Bankruptcy attorney in Palo Alto, CA

In Palo Alto, 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.

For that reason, it would be prudent to speak with a good Palo Alto, California bankruptcy attorney. This attorney will be able to advise you as to whether or not filing for bankruptcy is a good idea, given your particular situation. This determination is highly dependent on the details of each individual case, so a Palo Alto attorney's advice is truly indispensable.

Types of Bankruptcy in Palo Alto, California

There are 3 bankruptcy schemes that are commonly used in Palo Alto: Chapter 7, Chapter 13, and Chapter 11 bankruptcy. Bankruptcy is governed by federal law, so the procedures in Palo Alto, California are very similar to what they will be anywhere else in the United States. Chapter 7 bankruptcy requires the debtor to liquidate some of his or her property, and use the proceeds to pay creditors. While this doesn't sound like much of a relief at first glance, the upshot is that once the eligible property is sold, and the proceeds given to the creditors, all of the debtor's eligible debts are deemed paid in full, regardless of how much the creditors actually ended up getting. Not all of the debtor's property has to be sold off - the debtor will usually be allowed to keep things like a house, at least one car, some types of personal property, retirement accounts, and insurance policies. It should be noted that some debts are not dischargeable, and will have to be paid in full even if the debtor files for bankruptcy. This includes student loans, taxes, and criminal fines.

The other commonly used bankruptcy system in Palo Alto is Chapter 13 bankruptcy. This allows a debtor to repay most or all of their debts in a structured manner. It reorganizes the debt into lower periodic payments that, with a bit of frugality, the debtor should find manageable. This allows the debtor to continue to earn a living, and allows the creditors to eventually collect what they are owed. Once a repayment plan is approved by the bankruptcy court, creditors are legally barred from seeking repayment under the terms of the agreements that gave rise to the debt in the first place, and will instead have to accept payment under the new plan. Chapter 13 bankruptcy is usually a better option for people who have a steady income. Chapter 11 bankruptcy is primarily used by businesses, though it can be used by individuals (which is quite rare). Chapter 11 bankruptcy requires that the debtor come up with a reorganization plan - essentially telling the court how they propose to cut costs, streamline their operations, and pay their debts. This plan must be approved by the participating creditors through a simple majority vote.

One main advantage of Chapter 11 bankruptcy is that it allows businesses to continue their operations while the process plays out. Furthermore, their stock can still be bought and sold.

How Can a Palo Alto Bankruptcy Lawyer Help?

One should not make the decision to file for bankruptcy in Palo Alto lightly. Before making any such decision, it would be highly advisable to contact an experienced Palo Alto bankruptcy attorney.

Talk to a Bankruptcy & Finances Law Attorney now!

Life in Palo Alto

Palo Alto, California is a city in Santa Clara County. It has a population of approximately 64,400 people.

Palo Alto is best known for being the home of Stanford University, which is one of the top universities in the country. Stanford is particularly known for its law school, which consistently ranks as one of the top 3 law schools in the United States, along with Harvard and Yale. Stanford University has produced some of the most successful lawyers in Palo Alto, California.

Because of its location in Silicon Valley, and the presence of a world-class law school, some of the biggest and most well-known law firms in the world have opened offices in Palo Alto.

If you need legal representation, it's almost certain that there's a Palo Alto, California who has the expertise needed to help. Palo Alto, California attorneys are capable of handling a wide range of legal problems.

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