Legal Question in Bankruptcy in California
Can my relative file for chp 11 bankruptcy
Dear sirs
My relative purchased a vehicle and obtained insurance that indicated the insurance is void if involved in a DUI accident. My relatives car was totalled and he is still obligated to make monthly car payments.
He has a minimal income job and is unable to meet his financial obligations. Is he eligible to file for Bankruptcy protection?
Your response is appreciated.
Thank you
1 Answer from Attorneys
Re: Can my relative file for chp 11 bankruptcy
Whether or not your relative is "eligible" for bankruptcy under any given chapter cannot be determined from the facts you have presented. The possibly more important question is whether or not bankruptcy is in the best interest of your relative. You mention Chapter 11, which is primarily a business reorganization, although individuals can use it. Typical retainers for legal services start at around $15,000 and you have to propose a plan of repayment to your creditors. Attorneys fees can run anywhere from $10,000 to $75,000 for a simple case. I don't know what kind of debt we are talking about here, but I suspect that Ch. 7 would be a better solution for your relative. He should consult with a bankruptcy attorney in the area where he lives.
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