Struggling with business debt?

San Francisco, CA Bankruptcy Defense Lawyers

Introduction

Are you drowning in debt and feeling like there’s no way out? We get it. The financial strain can be overwhelming, and the thought of bankruptcy may seem like a last resort. But guess what? You’re not alone, and there’s hope. At Delancey Street, we specialize in helping individuals and businesses in San Francisco navigate the complex world of bankruptcy defense. Our mission is to provide you with the expertise and support you need to regain control of your financial future. So, let’s dive in and explore how our team can help you turn the tide.

Understanding Bankruptcy: What It Is and What It Isn’t

Bankruptcy is often misunderstood. Many people think it’s the end of the road, but in reality, it’s a legal tool designed to give you a fresh start. Bankruptcy is governed by federal law, specifically the U.S. Bankruptcy Code, and it’s intended to help both debtors and creditors find a fair resolution. There are different types of bankruptcy, each suited to different situations:

• Chapter 7: Often referred to as “liquidation bankruptcy,” Chapter 7 involves selling off non-exempt assets to pay off creditors. It’s a quick process, usually completed within a few months, and is ideal for individuals with limited income and significant unsecured debt.
• Chapter 13: Known as “reorganization bankruptcy,” Chapter 13 allows individuals with a regular income to create a repayment plan to pay off their debts over three to five years. This option can help you keep your home and other valuable assets.
• Chapter 11: Primarily used by businesses, Chapter 11 allows companies to continue operating while restructuring their debts. It’s a complex process but can be a lifeline for businesses facing financial difficulties.

The Bankruptcy Process: What to Expect

Filing for bankruptcy can be a daunting process, but it doesn’t have to be. With our team by your side, you’ll have a clear roadmap to follow. Here’s a general outline of what you can expect:

1. Initial Consultation: We’ll start with a free consultation to assess your financial situation and determine if bankruptcy is the right option for you. This is a no-pressure meeting where you can ask questions and get a sense of the process.
2. Gathering Documentation: You’ll need to provide detailed financial information, including income, expenses, assets, and debts. This helps us prepare your bankruptcy petition accurately.
3. Credit Counseling: Under the 2005 Bankruptcy Act, you must complete a credit counseling course before filing. This course helps you understand your financial options and is a prerequisite for filing.
4. Filing the Petition: We’ll file your bankruptcy petition with the court, which triggers an automatic stay. This stay halts all collection actions, including foreclosure, repossession, and wage garnishment.
5. Meeting of Creditors: About a month after filing, you’ll attend a meeting with your creditors and the bankruptcy trustee. This meeting, known as the 341 meeting, is an opportunity for creditors to ask questions about your financial situation.
6. Discharge or Repayment Plan: If you’re filing for Chapter 7, your debts will be discharged within a few months. For Chapter 13, you’ll begin your repayment plan, which lasts three to five years.

Common Concerns and Misconceptions

We know that the idea of bankruptcy can be scary. Here are some common concerns and misconceptions we often hear from our clients:

• “Will I lose everything?” No, you won’t lose everything. Bankruptcy laws allow you to keep certain exempt assets, such as your home, car, and personal belongings.
• “Will bankruptcy ruin my credit forever?” While bankruptcy will impact your credit score, it’s not the end of the world. Many people start rebuilding their credit soon after their bankruptcy is discharged.
• “Is bankruptcy the only option?” Not necessarily. Bankruptcy is just one tool in the financial toolkit. We can help you explore other options, such as debt settlement or negotiation, to find the best solution for your situation.

Legal Citations and Case Law

Navigating bankruptcy law requires a deep understanding of both federal and state regulations. Here are some key legal citations and case law relevant to bankruptcy defense in California:

• 11 U.S.C. § 362: This section of the U.S. Bankruptcy Code outlines the automatic stay, which halts all collection actions once a bankruptcy petition is filed.
• In re Zilog, Inc., 450 F.3d 996 (9th Cir. 2006): This case discusses the scope and application of the automatic stay in bankruptcy proceedings.
• California Code of Civil Procedure § 704.730: This section covers the homestead exemption, which allows debtors to protect a certain amount of equity in their home during bankruptcy.

Real-Life Scenarios: How We Help

Let’s look at a couple of hypothetical scenarios to illustrate how we can help:

• Scenario 1: Individual Bankruptcy: Jane, a single mother in San Francisco, is overwhelmed by credit card debt and medical bills. She’s worried about losing her home and car. After consulting with us, Jane decides to file for Chapter 7 bankruptcy. We guide her through the process, ensuring she completes all necessary documentation and credit counseling. Within a few months, Jane’s debts are discharged, and she’s able to keep her home and car.
• Scenario 2: Business Bankruptcy: XYZ Corporation, a small business in San Francisco, is struggling to stay afloat due to mounting debts and declining sales. The owners consult with us and decide to file for Chapter 11 bankruptcy. We help them develop a reorganization plan that allows them to continue operating while restructuring their debts. Over time, XYZ Corporation regains its financial footing and emerges from bankruptcy stronger than before.

Conclusion: Take the First Step Toward Financial Freedom

Are you ready to take control of your financial future? Bankruptcy can be a powerful tool for achieving debt relief and starting fresh. At Delancey Street, we’re here to help you every step of the way. Contact us today for a free consultation, and let’s explore how we can help you achieve financial freedom.

Call to Action:

• Contact Us: Ready to take the first step? Call us today for a free consultation.
• Leave a Comment: Have questions or need more information? Leave a comment below, and we’ll get back to you.
• Share Your Story: Have you gone through bankruptcy? Share your story with us and help others understand that they’re not alone.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific legal advice, please consult with a qualified bankruptcy attorney.