Many individuals and businesses are going through tough economic times because of the recent turmoil in the real estate and financial markets as well as the overall economy. These people risk insolvency or the possibility of home foreclosure or catastrophic business loss. Permanent debt relief is key to survival.

Federal bankruptcy and California insolvency laws and regulations can help individual and businesses pare off their debts and get a “fresh start.” If you are in financial distress or need to “organize” your business, Abacus Law can help. Whether it is obtaining an “automatic stay” against collection proceedings or preparing a “plan” for reorganization and getting it approved or obtaining a complete “discharge” from existing debts, Abacus Law has the background and experience to find the appropriate solutions to your financial problems.

Chapter 7 Bankruptcy

Individuals and businesses may remove the risk of judgments, lawsuits, foreclosure, tax levies or garnishments by filing a Chapter 7. Designed for complete liquidation, Chapter 7 provides for a complete discharge of all pre-existing debts and provides a fresh start for the debtor immediately upon filing. Any wages, commissions, rents, profits etc. earned after the petition is filed, are not property of the bankruptcy estate.

Chapter 11 Bankruptcy

Businesses and consumers with large debts may file a reorganization plan under Chapter 11. The debtor generally retains possession of its assets and conducts business operations during the workout, negotiations and debt reduction with creditors.

Chapter 13 Bankruptcy

Designed for individuals with limited debts and regular income, Chapter 13 puts a stop to creditor harassment, collection and repossession efforts. After the plan is approved by the court, unsecured non-priority creditors generally receive partial payment over a course of time in full satisfaction of their debts.