Vakili Karimi LLC: Bankruptcy Law

Bankruptcy Law

Bankruptcy is the legal process thorough which individuals or businesses in financial trouble are able to work out their debts and pay them out under the protection of the bankruptcy court. The two most common consumer bankruptcies are Chapter 7 (straight bankruptcy – liquidation) and Chapter 13 bankruptcy (reorganization – income order).

The decision to file for bankruptcy requires careful analysis of your situation. You should file for bankruptcy only after determining that it is the best way to deal with your financial problems.

With Chapter 7 Bankruptcy, a debtor uses liquidation, meaning he or she sells off property in order to cover as much of the debt as possible while leaving enough property to be able to start all over financially. Chapter 13 Bankruptcy, on the other hand, is the reorganization type of bankruptcy, where the debtor is allowed three to five years over which to pay back his or her debts.

Vakili Karimi LLC helps clients filing both Chapter 7 and Chapter 13 bankruptcy cases. We look for ways to make each bankruptcy case more productive and effective than it would be if the debtor tried to handle it alone, ultimately saving the debtor significant amounts of money. We also work with each client to figure out whether bankruptcy is the even most appropriate option in his or her situation. No matter what, we will fight to protect your rights and your property.

Having a good bankruptcy attorney can bring you peace of mind, knowing your case is in good hands. Vakili Karimi is committed to getting you debt relief and providing you with valuable information, services and advice to secure you a better financial future.

If you want to learn whether filing for bankruptcy is right for you, contact Vakili Karimi LLC for a consultation.

2 Common Types of Bankruptcy:

Chapter 7 (“straight bankruptcy” or “straight liquidation”):

The Chapter 7 Trustee takes control over the debtor’s non-exempt property, liquidates it, and distributes the proceeds to creditors in order of their priority. Many Chapter 7 cases are “no asset,” meaning there are no non-exempt assets available for liquidation by the Trustee.

Chapter 13:

This chapter of the Bankruptcy Code allows individuals with regular income to reorganize their financial affairs. The chapter applies if, and only if, the individual’s liquidated unsecured debts are less than $307,675 and non-contingent, liquidated, secured debts are less than $922,975. The debtor submits a plan for Court approval that provides for payment to creditors over a three- to five-year period.