Atari has announced that it has filed Chapter 11 Bankruptcy to reorganize its debt. The Atari Bankruptcy is one of many corporate reorganizations announced in the recent past. The classic video game platform is able to benefit from a Chapter 11 by restructuring its management and prioritizing its creditors.
In general, businesses that file for bankruptcy seek to either liquidate all debt or reorganize and restructure to reemerge as a more profitable entity. Big businesses and bankruptcy have become synonymous with the recent high profile cases filed by Hostess, General Motors, and Chrysler. Filing bankruptcy allows companies to eliminate debt, while the bankruptcy laws operate to protect them from having to halt operations during the reorganization.
Atari will benefit by eliminating debt and streamlining operations if it successfully emerges from bankruptcy. Similarly, there are beneficial bankruptcy options for individuals who cannot keep up with crushing debt and need relief.
Chapter 7 Bankruptcy for Individuals
A Chapter 7 Bankruptcy might make sense if your credit cards have gotten out of control, or if collection calls have become a problem. Many people file Chapter 7 to eliminate Credit Card Debt, stop wage garnishment, or stop a foreclosure sale.
If you have fallen behind on mortgage payments, Chapter 7 could be a short term strategy for taking control of your situation. Whether you are looking to stop harassing phone calls or prevent foreclosure, it is best to talk to a lawyer today to get free advice regarding your best options.
Chapter 13 Bankruptcy for Individuals
Bankruptcy isn’t just for big business like Atari who need to reorganize. Many individuals file Chapter 13 Bankruptcy when they have fallen behind on mortgage payments and need to catch up in a repayment plan. A Chapter 13 bankruptcy functions the same way as a Chapter 7 bankruptcy when you need to stop creditors from calling or stop foreclosure.
When you file for Chapter 13 bankruptcy, you may be able to eliminate your credit card debt, wipe out liens, and save your home and cars. The main factor in filing Chapter 13 is passing the means test. You will need to show that your income is high enough to pay for your mortgage, your household expenses, and for a plan payment. The best advice is to meet with a lawyer and discuss your situation in detail.
Hire a Bankruptcy Attorney Today
Whether you are thinking about a Chapter 7 bankruptcy or a Chapter 13 bankruptcy, finding the right bankruptcy attorney in Los Angeles is important. Consumer Action Law Group has a team of California Lawyers that will meet with you or talk to you on the phone for free, before you make any decisions about filing. Your situation is unique to you. You may be filing bankruptcy to keep your home while Atari may be filing for reasons of profitability or mismanagement. Talk to one of the lawyers at Consumer Action Law Group today and get a fresh start tomorrow.