Bankruptcy San Diego
Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay its creditors. Creditors may file a bankruptcy petition against a debtor ("involuntary bankruptcy") in an effort to recoup a portion of what they are owed or initiate a restructuring. In the majority of cases, however, bankruptcy is initiated by the debtor (a "voluntary bankruptcy" that is filed by the insolvent individual or organization).
Generally, a debtor declares bankruptcy to obtain relief from debt, and this is accomplished either through a discharge of the debt or through a restructuring of the debt. Generally, when a debtor files a voluntary petition, his or her bankruptcy case commences.
The most common types of personal bankruptcy for individuals are Chapter 7 and Chapter 13. Douglas G. Farquhar speciailizes in these types of bankruptcy proceedings. Corporations and other business forms file under Chapter 7 or Chapter 11.
The 2005 amendments to the US Bankruptcy Code introduced the "means test" for eligibility for chapter 7. An individual who fails the means test will have his or her Chapter 7 case dismissed or may have to convert his or her case to a case under Chapter 13.
Call (619) 702-5015 to speak to a knowledgeable attorney if you have any questions regarding this information.