Knowledgeable Chapter 9 Bankruptcy Attorneys in Chico-Redding
Many people have never heard of Chapter 9 bankruptcy. Chapter 9 only applies to municipalities. This means that government entities such as schools, cities or counties can use it. Some California municipalities that have filed Chapter 9 bankruptcy in the past include San Bernardino County and Jefferson County.
What Is Chapter 9 Bankruptcy?
The chief judge of the court of appeals that is closest to you is the presiding bankruptcy judge. With Chapter 9 bankruptcy, you reorganize your debts, and you submit a plan for repayment of the debts to the court. However, the court does not have as much power with Chapter 9 as it does with Chapter 11. An automatic stay is issued after you file to block creditors from further collection attempts. In some situations, this stay protects officials and officers of the municipality from direct action. When the payment plan has been satisfied, the bankruptcy is discharged.
Is Chapter 9 Right for Me?
Few clients will use this type of filing. If you represent a school, a government entity, a city or a county, talk to us to learn more about your options. Chapter 9 can help you extend repayment periods, reduce high interest rates and refinance some debts. We offer a free, no-obligation consultation.