At The Law Office of Melanie Tavare, we focus on providing the experienced legal representation that business owners interested in navigating the bankruptcy process deserve. We understand just how serious the bankruptcy process is as well as the numerous complications that can arise along the way. Fortunately, our experienced Oakland bankruptcy attorney can help you get your business back on the right financial track if your debts have become unmanageable.

The following are some answers to the most common questions our clients have about the bankruptcy process. Not only do many business owners wonder whether they qualify for bankruptcy, it is also common for them to have questions about the process in general. To facilitate the bankruptcy process, we offer initial free consultations to help you determine whether bankruptcy is the best option for your current situation. If you are considering pursuing business bankruptcy in Oakland, you should speak with a knowledgeable attorney today.

Bankruptcy in California

Bankruptcy is a federal court process that was created to help individuals as well as businesses eliminate their debts or create repayment plans for creditors. When you file either a Chapter 7 or Chapter 13 bankruptcy petition, a court will enforce an “automatic stay” that prohibits creditors from pursuing any of your outstanding debt.

Should You File for Bankruptcy?

There are a number of factors that can influence whether a person is eligible to file for bankruptcy. During an initial consultation, an experienced bankruptcy attorney can help you determine the best course of action for your unique situation. We often begin by examining your finances, which can include your interests in real estate, insurance policies, and whether you have any other of assets that can influence your bankruptcy eligibility.

Will Bankruptcy Erase All of Your Debts?

There are a number of debts that are capable of being discharged through the bankruptcy process. Some of these include cash advances, credit card debts, and personal loans. Other debts, however, are not capable of being discharged through bankruptcy. This means that a business owner will still be responsible for repaying these debts even after declaring bankruptcy. To determine exactly how bankruptcy will affect your business’s bottom line, you should not hesitate to speak with an experienced attorney.

Co-Signers can be Protected in Bankruptcy Proceedings

In some situations, co-signers on loans can end up responsible for the repayment of your debts when you file for bankruptcy. For example, if you file for Chapter 7 bankruptcy, creditors will still be able to proceed with collection efforts against your loan co-signers even if your debt obligation is discharged. When you file for Chapter 13 bankruptcy, a co-signer is protected provided that several conditions are met including that the debt is a consumer debt, the debt was not created in the ordinary course of business, the co-signer did not benefit from the proceeds of the debt, and the debtor complied with the Chapter 13 bankruptcy agreement.

Chapter 11 and Chapter 13 Bankruptcy

Many business owners ask about the possibility of Chapter 11 or Chapter 13 bankruptcy, which are sometimes referred to as reorganization bankruptcies. In both Chapter 11 and Chapter 13, a business will be permitted to continue operating. The business owner will submit a debt repayment plan and some financial reorganization will occur within the company. Even though Chapter 11 is only for businesses, Chapter 13 is frequently used by sole proprietors and individuals, as well. For more insight on which type of bankruptcy is best for you, reach out to an Oakland business bankruptcy attorney today.

Filing for Bankruptcy More than Once

Whether you file for Chapter 7 or Chapter 13 bankruptcy is influenced substantially by whether you have previously filed for bankruptcy. While it is true that a person can receive a discharge of debt only once every eight years, in some circumstances, individuals are permitted to file more often than that. Because multiple bankruptcy filing issues are often particularly complex, it is best to have an experienced bankruptcy attorney by your side.

Speak with an Experienced Bankruptcy Lawyer in Oakland

If you are considering filing for bankruptcy, you probably have a number of serious questions about the process. The assistance of a skilled bankruptcy attorney can be particularly helpful when navigating the bankruptcy process for your business. Contact The Law Office of Melanie Tavare today to schedule your free initial consultation.