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How To File For Chapter 11 Monterey

By Ruth Butler Bankruptcy is a legal option for debtors to settle their debts without paying the outstanding balance of their debts. Both ...

By Ruth Butler


Bankruptcy is a legal option for debtors to settle their debts without paying the outstanding balance of their debts. Both businesses and individual debtors can file for bankruptcy to get debt forgiveness. Whatever the case, it is crucial you look for a competent lawyer to advise and guide you through the process. After all, legal counsel is absolutely necessary when filing for chapter 11 Monterey.

Since there are many bankruptcy lawyers operating in every major city, you have to do some research to identify the most suitable lawyer for your needs. Start by comparing their experiences. You are looking for the most experienced lawyer to handle your case, so be sure to compare the years of experience and number of cases they have handled over the years. This will enable you to identify the most competent lawyer.

There are many types of bankruptcies in existence. The most common, however, are; chapters 11, 13 and 7. Chapter 11 is basically business bankruptcy. It provides for debt restructuring. When a business has accumulated too much bad debt, the management can use this option to have their debts restructured and eventually forgiven.

When looking for bankruptcy protections under this option, the owner or management of the company or business needs to file the necessary paperwork and submit a plan on how they plan to repay their debts. The plan must be presented to the creditors and the court. If approved, the firm will have to make monthly payments over a period of several years to get debt forgiveness.

It is crucial to note that with this chapter, the trustee will only be required to accept regular monthly payments to settle the outstanding debts. No liquidation will be done. The monthly installments are usually based on the financial muscle of the debtor, and not what they owe. After a few years of making regular monthly payments, the outstanding debts will be forgiven.

With this option, debtors do not lose their assets to liquidation. What happens is that the trustee helps the firm to come up with a repayment plan for their debts. The plan must be presented to creditors, who will ask questions. After approval of the plan, the debtor will retain all assets and be required to make regular payments to the trustee every month to service their debts. After some time, all unpaid debts will be written off.

Ideally, bankruptcy should be considered after all other options have failed to yield any results. For starters, you should consider refinancing your debts. If this fails, you should consider consolidating your debts. If these two options, together with other debt resolution options fail, you should consider filing for bankruptcy to get bankruptcy protections.

Once a company has become bankrupt, the management will not be able to acquire new equipment or offload existing equipment. This is because the trustee will be tasked with protecting the assets of the business as well as protecting its financial position. This means that it will become extremely challenging for the firm to liquidate assets to generate cashflow.




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