Bankruptcy
Resources

Payment Plan

The first alternative to filing for bankruptcy would be to contact your creditors to arrange a payment plan. Most creditors are willing to work out some arrangement to repay the debt, so they are able to recover their money back. However, most often the creditors will want to be paid back in full. The best thing to do is be honest, and explain your situation, and that you would like to setup a new repayment arrangement and to see if the creditors would be willing to waive fees, interest and possibly principal.

Debt Negotiation

An additional option to filing personal bankruptcy is debt negotiations. Your creditors may be prepared to either lower your interest rates, accept reduced payments, or both in an effort to settle a debt, whether temporarily or permanently. It is always a good idea to sit down and figure out a plan before contacting the creditor. Often times, if you are able to make a lump sum payment, creditors may be willing to settle the entire debt for 10 to 50 cents on the dollar.

Debt Consolidation Loan

If all attempts at working out a new payment arrangement with your creditors are not successful, another option would be a debt consolidation loan. A debt consolidation loan can pay off all your creditors, leaving you with just the debt consolidation loan payment. Quite often this requires good credit to qualify for and a low credit score an prohibit many debtors from obtaining.

Debt Settlement

Debt settlement is another possibility. Hedtke Law Firm can assist you by negotiating with a creditor to settle your debt if you enter a debt repayment plan. Normally, with these types of plans, you are required to deposit money each month with a credit counseling service, which then pays your creditors according to a repayment plan created by the credit counselor. However, sometimes the cost of the monthly payments can be beyond th ability of the debtor to pay depending on the amount of debt involved and the willingness of the creditor to accept less than the full amount owed.

Bankruptcy Options for Small Businesses in California

If your small business operation is facing financial instability with no foreseeable resolution on the horizon, don’t wait for matters to worsen. Contact the Hedtke Law Firm. We are a local bankruptcy law firm serving clients in all of southern CA.

Chapter 7 and 13 Bankruptcy for Small Businesses

When you think about business bankruptcy, you probably think Chapter 11. However, for small businesses, Chapter 7 or Chapter 13 filing may be the most appropriate choice for finding debt relief.

If your business is a sole proprietorship, there is no difference between the personal and the corporate filing – you are your company and its financial state is your financial state.

Our firm is readily prepared to advise you on making the right choice for you and your company. The process of commercial bankruptcy involves a steady stream of contact between the attorney and the business owner.

We work very closely with our business clients and consistently provide candid responses to any query they may have. In no way do we take any action that could be misconstrued as a conflict of interest.

Discharging Tax Debt Through Bankruptcy

Some back taxes can be eliminated in bankruptcy. Even if your tax debt cannot be discharged outright, Chapter 13 bankruptcy can allow you to pay past due taxes over time without interest.

The Hedtke Law Firm can determine if your tax debts are dischargeable in bankruptcy, and help you defer those tax obligations to get the IRS or Franchise Tax Board off your back.

Let’s Discuss Your Tax Debts And Other Debts

The Hedtke Law Firm handles Chapter 7 filings and Chapter 13 filings. Arrange a free consultation at one of our three offices across Southern California:

Covina • Upland • Moreno Valley

Taxes In Your California Bankruptcy

Federal and state income taxes are normally not discharged in bankruptcy. Neither are local property taxes and assessments. However, some income taxes more than three years old can be eliminated, if your tax returns were properly filed at the time or at least two years ago. Our lawyers will have to closely examine the facts of your case to identify which taxes, if any, you could discharge.

If it turns out the tax debt is not dischargeable it can nevertheless be paid over time in a Chapter 13 repayment plan, without the mounting penalties and interest that would otherwise apply.

When you file for bankruptcy, all creditor actions are halted, including tax levies against your property or wage garnishment by state or federal authorities.