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From Bankruptcy to a Successful Business

Recovering from old financial debts and running a billion-dollar business successfully might seem like a joke to most people. But filing for bankruptcy is one of the most reliable ways to get out of old debts and maintain a business. Even though you might endure a few challenges at the beginning with establishing good credit, managing your cash flow, and rebuilding your financial profile, once you financially recover from bankruptcy, you can give your business a fresh start. To help you understand better, this article will explain everything in detail.

Related: “Types of Bankruptcy in California”

1. Build a Budget and Start Saving Money

There’s a very famous quote that says, “Prevention is the best medicine, and creating healthy financial habits and a budget can help you save money for your present and future.” So, to avoid history repeating itself, start off by managing your expenses. This will help you stay within the financial budget and reduce your chances of facing debts again. Once you think you have successfully recovered from your debts, you can put all your time, money, and energy into getting your business back on track.

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2. Develop Good Credit Habits

Another effective way to accelerate your financial recovery is by developing a good credit habit. Because reestablishing a solid credit score will help you accomplish your financial goals. For instance, you can start off by focusing on making timely payments. It will benefit you when opening a secured credit card. Not only that, but it will also help you proficiently handle your company’s utility bills, electricity and phone bills, and many other expenses. Once you get over these challenges, you can deal with any problem. This way, you’ll be able to take your business one step further ahead.

3. Plan for Your Financial Future

Do you want to grow your business? Or do you wish you had another branch? After filing for bankruptcy, you can stick to these goals and budget and focus more on your financial future. This way, you will stay motivated and continue to rely more on the funding you’re saving that you can later on utilize in your company’s growth and development. We believe you will agree that the most reliable way to secure your financial future is to make wise cash flow and financial decisions.

Related: “Warning Signs of a Bankruptcy”

4. Seek Professional Help

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If you find bankruptcy is getting on your nerves, try seeking professional help. There are many highly qualified lawyers available that can help you resolve your issues and provide you with practical solutions.

The Bottom Line

After filing for bankruptcy, you will not immediately establish a billion-dollar business. But this doesn’t mean that you won’t. It’s completely possible, but it will require a lot of hard work, patience, and dedication to fully recover and get back on track. Just consider the guide above to creating a better and more secure future for you and your business. If you’re looking for a recommendation, then Family Law Richard E. Young & Associates is the best option. We have a team with decades of experience working with clients. To get legal assistance, contact our law firm today. You can also visit our website for more information.

Warning Signs of a Bankruptcy

Economic times are tough and many people may find themselves on the shorter end of the stick when it comes to finances. This can be due to loan debts, overwhelming bills, low wages, business and personal expenses, and much more. Unfortunately, some individuals may not realize that they’re heading towards bankruptcy before it’s too late. Being aware of the warning signs and getting expert advice early on can help in avoiding the worst case scenario.

What Are the Warning Signs?

People that file for bankruptcy often make the mistake of waiting too long before seeking advice from a bankruptcy attorney. Here are some warning signs you should be aware of:

1. You don’t have savings.

Living paycheck to paycheck can be tough because you’re spending your money as quickly as you receive it. If you don’t have any savings set aside for emergencies, an unexpected event or disaster can set you back and easily cause you to fall behind on paying important bills.

2. Your debt-to-income ratio is high.

A debt-to-income ratio is the percentage of monthly income that goes towards paying your debts. For example, if you make $2000 per month and $1000 is going towards paying off bills, then that means your ratio is 50%. A significantly high ratio will affect your ability to apply for loans.

3. You’re struggling with debt collectors.

Receiving demands and notices from debt collectors is another red flag. This occurs when a debt goes unpaid for longer than 180 days and the creditor sells the debt to a debt collection agency.

4. You have high interest rates due to being late on credit card payments.

Being unable to pay more than the minimum payment will incur additional interest on the remaining balance. If you find yourself unable to catch up and pay off your balances for an extended period of time, it’s likely you will be stuck in that cycle of debt.

5. You’re struggling to pay off substantial medical bills and expenses.

Having inadequate health insurance or none at all can lead to expensive medical bills in the case of unexpected injuries, medical conditions, or hospitalization. A significant rise in debt due to medical bills can force you to file for bankruptcy. 

6. Your personal relationships are being affected by your debt.

Having large amounts of debt is a huge financial burden on your life. This leads to feelings of stress and can cause arguments with loved ones – further straining your personal relationships. People often tend to hide their debt and keep their loved ones in the dark, which can also be a strong sign of a debt problem.

Get the Help You Deserve

If multiple warning signs apply to you, you may be on the verge of bankruptcy. We highly recommend that you seek out legal advice from a qualified bankruptcy attorney before it’s too late. Rely on Family Law Richard E. Young & Associates and schedule an in-depth consultation today! For more information, please visit our website or call (949) 951-9529.

Types of Bankruptcy in California

Many families, business, and individuals file for bankruptcy every year for a wide array of reasons. In California there are four common types of bankruptcy cases that ultimately work to help people and corporations repay their debts in a more feasible way. Below we review these four types of cases, who they apply to, and where you can go for legal support in California for bankruptcy.

Chapter 7

In order to qualify for chapter seven bankruptcy in California your income must be below a predetermined amount and you must allow the court to sell your assets to pay off your debts. This means any assets you possess minus certain exemptions will be sold, granting debtors what some call a ‘fresh start.’ Keep in mind you can only file for chapter seven bankruptcy once every six years.

Chapter 11

Chapter eleven bankruptcy is typically for businesses and corporations in debt, but is sometimes available to individuals as well. This option allows debtors to reorganize or restructure their debt so they can keep their assets while slowly paying it down over time. Not only is chapter eleven bankruptcy the most flexible, but it also does not have limits on the amount of debt one can be in.

Chapter 12

According to the U.S. court system, chapter twelve bankruptcy is specifically designed for ‘family farmers or family fishermen.’ It’s a simplified version of chapter eleven bankruptcy that allows these farmers and fishermen to carry out repayment plans to their creditors over three to five years, without surrendering any assets.

Chapter 13

Chapter thirteen bankruptcy is similar to both chapter eleven and twelve, but is designed specifically for individuals making a typical income. Debtors who qualify for chapter thirteen bankruptcy will have to repay their debts over three to five years while being allowed to keep their property.

Final Thoughts

Year after year, millions of people file for chapter seven bankruptcy, frequently those going through a divorce. Often, a discharge of consumer and tax debt through bankruptcy can be the key to unlocking your financial hardship. Contact our firm in Orange County, CA today for legal support with family law, trusts, bankruptcy and more.

Why Should You Hire a Bankruptcy Lawyer?

When it comes to filing for bankruptcy, you always want to make sure to choose the right lawyer. When you file for bankruptcy, it can bring you a huge sense of relief, especially when you are under a debt. Once your case is over, you can get back to your everyday life, debt-free. Sometimes, it is a necessary solution to your problem and is a must that you fully understand the process. And we are here to walk you through it. The bankruptcy forms are daunting enough as they are. Read on and find the many ways an attorney can help!

Complete and Schedule Paperwork

When you begin the paperwork you will have to file pages of financial data. The data will cover debts, income, expenses, assets, and financial transactions. When you hire the right attorney, they will know exactly what you have to disclose and how to value your assets.

Accurate and Complete Testimony

When you file for bankruptcy, you are going to need to sign the paperwork and tell the court, under penalty of perjury, that the information you provided is correct to the best of your knowledge. Your attorney can be there with you through that process to ensure your testimony is complete.

Negotiate With Your Creditors

Throughout the Chapter 7 bankruptcy process, your attorney has the ability to negotiate your reaffirmation agreement and can help you to keep your home or car. If you are going through a Chapter 13 bankruptcy, then your attorney can negotiate on payment terms. Not only that, but they can also negotiate on the value of collateral and interest rates in order to offer you an affordable payment plan.

Peace of Mind

When you leave the case in the expert hands of the right attorney, you can experience a stress-free process knowing that everything is on track. An attorney can provide you with the information to proceed through the case and inform you of the status every step of the way.

All in all, choosing an attorney you can count on is a must. That’s where we can help. Here at Family Law Richard E. Young & Associates, we have years of hands-on experience and are here to get you through the confusing legal process of bankruptcy.