Best Restructuring & Insolvency Lawyers in Glendale

About Restructuring & Insolvency Law in Glendale, United States

Restructuring and insolvency law in Glendale, United States serves as a key legal framework for both businesses and individuals experiencing financial distress. These legal processes are centered around reorganizing debts, managing obligations, and, if necessary, winding down entities in an orderly manner. For businesses, restructuring often means renegotiating terms with creditors or reorganizing operations to return to solvency. For individuals, bankruptcy protection can offer relief from overwhelming debt. Glendale follows both the federal laws governing bankruptcy, primarily set out in the United States Bankruptcy Code, as well as California state-specific statutes and procedures.

Why You May Need a Lawyer

There are several common situations where hiring a restructuring and insolvency lawyer in Glendale may be beneficial. If you are facing mounting debts, creditor harassment, foreclosure, repossession, or lawsuits due to unpaid bills, a lawyer can explain your options and help protect your assets. Business owners may need legal guidance if the business is unable to meet its financial obligations, is at risk of losing its assets, or wants to explore reorganization to avoid liquidation. Legal advice is also crucial if you are considering filing for bankruptcy, need assistance negotiating with creditors, or are navigating an out-of-court restructuring.

Local Laws Overview

Restructuring and insolvency matters in Glendale are generally governed by federal law, but California’s local regulations play a significant supplementary role. Glendale residents primarily rely on the United States Bankruptcy Code, which provides for processes such as Chapter 7 (liquidation), Chapter 11 (business reorganization), and Chapter 13 (individual debt adjustment). California provides additional exemptions to protect certain property from creditors during bankruptcy, such as homes, vehicles, and retirement accounts. The local bankruptcy court for Glendale is the United States Bankruptcy Court for the Central District of California. California law also regulates debt collection practices to protect consumers from unfair actions.

Frequently Asked Questions

What is the difference between bankruptcy and restructuring?

Bankruptcy is a legal process for individuals or businesses to eliminate or repay debts under court supervision. Restructuring refers to modifying the terms and structure of existing debts to improve the debtor’s financial position, often outside of court but sometimes within bankruptcy proceedings.

Which type of bankruptcy should I consider?

The most common options are Chapter 7, which is liquidation, and Chapter 13, which allows individuals to reorganize their debts over a period of time. Businesses often use Chapter 11 for reorganization. The best type depends on your circumstances and should be discussed with a lawyer.

Will I lose my house if I file for bankruptcy in Glendale?

Not necessarily. California law provides homestead exemptions that may allow you to keep your primary residence, subject to certain limits. The specific outcome depends on your equity and the details of your bankruptcy case.

How long does the bankruptcy process take?

The duration varies. Chapter 7 cases can be completed in several months, while Chapter 13 can last three to five years due to its repayment plan structure. Chapter 11 cases for businesses can also be lengthy and complex.

What assets are exempt from creditors in California?

California allows exemptions for primary residences, vehicles up to a certain value, retirement accounts, personal items, and some wages. The specific amounts and scope of exemptions are defined by California law and may change periodically.

Can filing for bankruptcy stop foreclosure or repossession?

Yes, filing for bankruptcy triggers an automatic stay that temporarily halts foreclosure, repossession, and most collection activities. This provides breathing room to address your financial situation.

How does business restructuring differ from liquidation?

Business restructuring aims to renegotiate debts and continue operations, possibly under new terms or ownership. Liquidation involves selling off assets to pay creditors and shutting down the business.

Is debt negotiation an alternative to bankruptcy?

Yes, in some cases, working directly with creditors to negotiate lower payments or settlements can help avoid bankruptcy. An experienced lawyer can assist with these negotiations and ensure your interests are protected.

What are my duties and responsibilities when filing for bankruptcy?

You must provide complete and accurate financial information to the court, attend hearings if required, complete credit counseling, and cooperate with the bankruptcy trustee. Misrepresentation can have serious legal consequences.

Will bankruptcy affect my credit score?

Yes, bankruptcy will impact your credit score for several years. However, it can offer a fresh start and, over time, you can rebuild your credit with responsible financial behavior.

Additional Resources

There are multiple resources in Glendale and California for those seeking information or help with restructuring and insolvency:

• United States Bankruptcy Court - Central District of California
• California Department of Consumer Affairs
• Legal Aid Foundation of Los Angeles
• National Association of Consumer Bankruptcy Attorneys
• Consumer Credit Counseling Services
• Local bar associations with lawyer referral services

Next Steps

If you are facing financial difficulties and considering restructuring or filing for bankruptcy in Glendale, start by gathering key financial documents, including a list of your debts, assets, income, and expenses. Seek out a qualified restructuring and insolvency lawyer who is familiar with both federal bankruptcy law and California’s local regulations. Schedule a consultation to discuss your situation, potential strategies, and what to expect during the process. A knowledgeable attorney can help you assess all available options, determine eligibility, protect your legal rights, and guide you toward a financial fresh start.