Many California residents have been enjoying the last couple of years, financially speaking. Things have been on the uptick ever since the 2008 economic depression (caused by the housing market collapse), and though things still are not quite back to where they were, it certainly appears we are on our way.
However, even in good times, there are those that need help sorting out their financials. There are still many people struggling with the possibility of foreclosure, and many more struggling to find work or to keep up with their bills.
About a month ago, we discussed the Chapter 11 filing of the special effects company Rhythm & Hues. The company is one of the most renowned special effects companies in the world (they worked on the movie “Life of Pi,” which won the Academy Award for Best Visual Effects), but has faced a declining financial landscape for awhile now. Foreign competition in the visual effects industry has left many visual effects firms thinking about bankruptcy.
Businesses are always going to be under financial pressure, and in many cases, this can result in a company going under. Many small businesses fail because of a lack of finances. The owner may pour in massive amounts of time and money into the company to get it off the ground — but ultimately, that does not mean the company will succeed.
Filing for Chapter 13 takes a lot of steps, and one of those steps is to get approval from a judge. If they approve your debt reorganization plans under the Chapter 13 filing, then a trustee will be appointed to your case to ensure you stay on track with your payments and that your financial situation remains in line with what the judge and your creditors expect.