Big Corporations Seek Chapter 11 Relief But So Can Individuals

San Diego Bankruptcy Attorney – Bankruptcy Lawyer In San Diego

Eastman Kodak is preparing to file for bankruptcy under Chapter 11  of the Bankruptcy Code. In the past days, Hostess Brands filed a second bankruptcy petition under Chapter 11 of the Bankruptcy Code. It is a common notion that only companies can seek protection under Chapter 11 and individuals only have two choices when thinking about filing bankruptcy in San Diego: reorganization under Chapter 13 or liquidation under Chapter 7.

As a bankruptcy lawyer in San Diego I want to let you know that individuals can file for Chapter 11 relief as well. Bankruptcy statutes, as of April 1, 2010, provide a limitation on the debtor’s debt for him to be eligible to file for Chapter 13 or for Chapter 11. As of April 1, 2010, the debt limit for individuals thinking about filing a Chapter 13 in San Diego or in other parts of California was raised to $360,475 of unsecured debt and $1,081,400 of secured debt. Congress has established regulations such that adjustments in the debt limit will happen every three years on the first day of April in the year of adjustment beginning April 1, 1998. Section 109(e) of the Bankruptcy Code prohibits use of Chapter 13 by individuals with debts that exceed the specified limits. In this case, when the debt limits exceed those set for a San Diego Chapter 13, the individual can file for bankruptcy under Chapter 11.

Filing for Chapter 11 bankruptcy relief can be an extremely complicated process. It is important that hire a bankruptcy lawyer in San Diego that has the requisite experience.

Adjustments of various dollar amounts specified in the bankruptcy code are intended to reflect changes in the Consumer Price Index for All Urban Consumers, published by the Department of Labor, for the most recent 3-year period ending on December 31 of the prior year.

Bankruptcy filing and preparation for bankruptcy filing requires the assistance of an experienced San Diego bankruptcy attorney. The award-winning lawyers at Thompson | Wedeking are some of the best in their field and will help clients and prospective clients from preparation to completion and beyond. Our San Diego bankruptcy lawyers what to help you get the fresh start you deserve. Please call our office at 888.590.1773 for a free-no hassle consultation, download a copy of our free California Guide to Bankruptcy or find out how you can become a client right now.

 

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