Bankruptcy Matters
Established clients as well as new and potential clients can trust in the depth of knowledge and breadth of experience that Tamborelli Law Group has to offer. Our lawyers are highly accomplished in a wide range of practice areas in the Bankruptcy forum.
Bankruptcy, Workouts & Business Reorganization
- Bankruptcy Litigation
- Bankruptcy Transactions
- Chapter 7
- Chapter 11
- Chapter 13
- Distressed Asset Resolution Team (DART)
- Non-Bankruptcy Remedies
- Adversary Proceedings
Many debtors face overwhelming debt that they cannot pay off, even with debt reorganization and an extended repayment plan. The solution for individuals who cannot pay their debt is Chapter 7 bankruptcy. In Chapter 7, known as liquidation, the debtor’s nonexempt property is sold and the proceeds are distributed to creditors. Debtors are discharged from paying most remaining debts.
Once the requirements for Chapter 7 are satisfied, our lawyers help individual debtors through the bankruptcy process. During the process, a trustee gathers and sells the nonexempt assets of the debtor. California law has two sets of exemptions—California Code of Civil Procedure sections 703 and 704—either one of which may be used in a bankruptcy case. We help debtors choose which exemption is best, given their circumstances.
The types of exempt assets we help debtors keep in whole or part, depending on the case, may include the following:
- Clothes and personal effects
- Ordinary household goods, such as furniture and appliances
- Homestead equity
- Jewelry
- Vehicle equity
- Retirement plans
- Insurance policies
- Tools of the trade
- Workers compensation and personal injury claim income
- Other assets
Once the trustee gathers and sells the nonexempt assets, and the creditors are paid according to the Bankruptcy Code, the remaining debts are discharged. Certain debts cannot be discharged, including the following:
- Alimony and child support
- Certain taxes
- Certain educational loans
- Certain personal injury debts
- Certain criminal restitution debts
Chapter 7 Bankruptcy is a complex process, so it is important to have an experienced bankruptcy lawyer on your side to help maximize the assets the debtor keeps and minimize the assets that are liquidated.
Our office has handled more than a thousand bankruptcies from start to finish. Chapter 7 allows clients to achieve the fresh start that they are entitled to by law. Through Chapter 7, we solve our clients debt problems. We stop garnishments, foreclosures and bank levies, relieve our clients’ stress and ultimately help them to rebuild their credit by first discharging their debt.
Chapter 11
Chapter 11 bankruptcy is known as reorganization bankruptcy and is used by businesses, including small businesses, partnerships, sole proprietorships, and corporations, to reorganize their assets to save the business and pay off debts. A Chapter 11 debtor has the exclusive right to file a plan of reorganization with the bankruptcy court for 120 days under 11 U.S.C. § 1121(b) of the Bankruptcy Code. This period can be extended by the bankruptcy court but after it expires, creditors or trustees may file separate plans with competing interests.
Our office assists debtors with working out a plan of repayment for approval by a bankruptcy court judge. Filing a repayment plan makes debt more manageable for businesses because it stops creditors from pursuing collection actions and foreclosures, and it allows businesses to restructure their assets to continue operations successfully. We help clients through the entire bankruptcy process, which includes the following:
The length of time it takes to develop and present a Chapter 11 plan of reorganization depends on the circumstances of the business and its debts, but typically takes several months. A lawyer must analyze business assets and debts to evaluate the length and complexity of your bankruptcy proceeding.
Chapter 13
Chapter 13 is designed for individuals with regular income who do not qualify for chapter 7 bankruptcy and/or homeowners whose mortgages are in default and who want to save their homes from foreclosure. Corporations and partnerships are not eligible to file Chapter 13. To qualify for chapter 13, Debtor’s secured debt cannot exceed $1,080,400 and unsecured debt cannot exceed $360,475. These limits are set forth in 11 U.S.C. Section 109 of the Bankruptcy Code.
Depending on Debtor’s disposable monthly income and the amount of priority debt that must be paid in full within a 3 or 5 year repayment period, our office will prepare a Plan which will need to get approved by a Bankruptcy Judge at the Confirmation hearing. Examples of priority debt that must be paid in full within the repayment period are arrears on the residence, domestic support obligations, and certain tax debts. A typical chapter 13 case takes 3-4 months to get a plan confirmed. The length of the plan (3 or 5 years) depends on Debtor’s household size and previous six months income. Upon successful completion of the plan, Debtor will receive the Order of Discharge of Debtor from the Bankruptcy Court.