California Bankruptcy Lawyer Blog

A San Jose bankruptcy attorney gives some tips to assist you with your bankruptcy reorganization plan.

As explained in yesterday's post, a bankruptcy reorganization plan is needed as part of filing a Chapter 11 bankruptcy. Even though it may seem overwhelming to put together the reorganization plan, you should take a deep breath and use the following five tips as a basis for your document checklist:

1. Classify each outstanding debt and creditor as:
Unsecured (i.e. line of credit; doesn't always need to be paid in full)
Secured (i.e. real estate; usually needs to be paid in full), or
Priority (ie. taxes or other administrative costs, and must be paid in full first)

2. List each asset and enclose expense statements and liabilities. This is also called financial disclosure statements. Be sure to include details and evidence to prove that the reorganization is possible to achieve.

3. Include a statement of current financial situation.

4. Include current copies of your income statements. Outline and amount of money that will be allotted to the repayment of debts.

5. If you modify any portion of your plan, make sure it is in alliance with the bankruptcy code.

We can answer all your questions regarding filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, bankruptcy in California, call us at 1800.941.6730 and we will be more than happy to offer you a free consultation over the phone. You can also fill out a free online evaluation at our website, www.sagarialaw.com, or request a free face to face appointment at a Sagaria Law office location close to you. We have bankruptcy attorneys located throughout California and Oregon to assist you with all your debt resolution needs.

A San Jose bankruptcy attorney explains the contents of a reorganization plan.

A reorganization plan, or formally, Plan of Reorganization, is a requirement of Chapter 11 bankruptcy. This bankruptcy status can be used by businesses or individuals in financial trouble, and must include the terms in which to make payments to creditors, and details that lay out the financial situation.

The Plan of Reorganization must include:
- A catalog of monies owned, and to which creditors
- An inventory of all assets
- An account of entire updated financial situation
- Present day income statements
- Present day expense statements

The Plan or Reorganization should be organized in an easy to understand format. In the catalog of monies owed, classify each creditor by the following: secured, unsecured, and priority debts. Priority debts are things like taxes or administrative costs. Unsecured debts are things like credit cards, and secured debts are things like mortgages and car loans. It is very important that any required revisions of the plan of reorganization follow the bankruptcy code.

At Sagaria Law, we offer an exceptional team of bankruptcy lawyers, bankruptcy client care specialists and bankruptcy staff supporting California. If you need help regarding bankruptcy in California, contact us at 1800.941.6730 for a free consultation or visit us online at www.sagarialaw.com to request a free in person appointment at a Sagaria Law office location nearest you. We can answer your questions regarding filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, bankruptcy attorneys located throughout California and Oregon to assist you with all your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation to quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, California!

A San Jose bankruptcy attorney blogs about reorganization plans in general.

A reorganization plan is used by businesses to consider the proper foundation of the business. Usually, this reorganization plan is compiled when there are financial or structural issues, but is ideally used in conjunction with the vision and ultimately the evolution of the business. The purpose of the reorganization plan is to ensure a proper balance within the system. A reorganization plan, as it relates to bankruptcy, can help an individual or business by providing a detailed payment plan to regain financial dependency.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or 1800.941.6730 and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. Sagaria Law can assist you with all aspects of your bankruptcy case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, lien stripping, a cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist in all of these important areas. Please complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A San Jose bankruptcy attorney gives a brief explanation of bankruptcy exit plans.

Bankruptcy exit plans are designed when a court finds a debtor to be financially insolvent. Certain details must be included on the paperwork, and the defendant must follow the plan set in the ruling to the best of his ability.

The bankruptcy exit plan is a blueprint guide that allows a person to return to financial stability. It spells out certain payments the person must make, which payments have been forgiven, and sets forth reasonable future payment terms on most debts. If a person cannot follow the bankruptcy exit plan, he remains in bankruptcy and may have to find other options that allow him to discharge debts.

Bankruptcy exit plans can be altered as long as there is an agreement between the debtor and the creditor. In general, the person (or company) will remain in bankruptcy until all the debts are paid off. A judge may allow an early exit if a company or individual can demonstrate that it will return to solvency in the near future. When the terms of the bankruptcy exit plan are executed, the person can start rebuilding their credit rating.

If you would like more information on this topic or other bankruptcy topics, please contact one of our California offices at 1800.941.6730. We at Sagaria Law can connect you with one our our experienced California bankruptcy attorneys. We have bankruptcy attorneys located throughout California and Oregon to assist you with your bankruptcy questions. If you need assistance regarding a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, a cram down, stopping a foreclosure or wage garnishment, free consultation or visit our website at www.sagarialaw.com to request an in-person consultation with an experienced bankruptcy attorney. We have an exceptional team of bankruptcy lawyers, bankruptcy client care specialists and bankruptcy staff supporting California.

A San Jose bankruptcy attorney comments on involuntary bankruptcies.

Firstly, the involuntary bankruptcy law allows the creditor to petition the court and force the debtor into bankruptcy. This only happens in rare cases, and can only result in a Chapter 7 or Chapter 11 filing.

The creditor has to have very credible causes, otherwise they jeopardize the principal owed, plus any costs paid by the debtor. The main reason a creditor would opt for involuntary bankruptcy is to stop the debtor from depleting any remaining assets. If the debtor is behind in payments but still owns high value assets, the creditor may be able to preserve them with the involuntary bankruptcy law.

This brings us to the question, is the involuntary bankruptcy law fair? In the case of the lender, if they feel the borrower is trying to pay off another lender unequally, or the borrower is trying to hide their assets, the lender would think the law is fair.

However, from the borrower's standpoint, if the lender is just trying to seize the borrower's assets for "bad faith" reasons, then it is obvious that the law is being abused. The involuntary bankruptcy law has certain requirements that must be met. Often, the intent seems to be fair, but it is up to the court to determine if the circumstances are justifiable.

Please do not hesitate to contact us at one of our California offices by calling 1800.941.6730 for your debt resolution needs. You can receive a free consultation over the phone, or request a free in person appointment at a Sagaria Law office nearest you. Please visit our website at www.sagarialaw.com and fill out a free online evaluation form to determine if you are a qualified candidate for bankruptcy. Sagaria Law's team of bankruptcy lawyers, bankruptcy client care specialists and bankruptcy staff can assist you with all aspects of your bankruptcy case. We at Sagaria Law can assist you regarding filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment,

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