Daniel A. Higson

Bankruptcy

Ventura Bankruptcy Attorney Daniel A. Higson is committed to helping people and families.

 

Bankruptcy is a process by which individuals or businesses can repay or eliminate some or all of their debt under the supervision of the Federal Bankruptcy Court. There are two major categories of bankruptcy: liquidation and reorganization. In liquidation, the person or company sells (liquidates) property to pay back debt. Some property may be protected (exempt) from liquidation, depending on the situation. On the other hand, reorganization is an attempt to extend the life of a company. It includes the restatement of assets and liabilitiesand a restructuring of the payment system to help the company pay its creditorsmore reliably. There are several types of bankruptcy, denoted by chapters, andeach covers different situations and follows its own specific regulations. Here we’ll go into detail about Chapters 7, 11, and 13.

 

Chapter 7

In Chapter 7 bankruptcy, some property may be liquidated to pay off debts, but often much of the propertywill be exempt

 

Chapter 11

Chapter 11 or “reorganization bankruptcy” is mostly filed by struggling companies to help restructure their business. 

 

Chapter 13

Chapter 13, also known as “wage earner bankruptcy”, requires a reliable source of income that can be used to pay off some of the debt.

 

Call Ventura Attorney Daniel A. Higson at 805-644-7111