Your Bankruptcy Solution

No one plans on being broke.  Neither do we plan to not be able to pay our credit card bills.  These things happening are not all your fault.  It is the fault of the system, the economy, or maybe even bad planning or spending.  The key to rough times is knowing that you have a solution.

If you find yourself in extreme amounts of debt, with no way of getting out of it, a Chapter 7 bankruptcy may be your solution. A Chapter 7 bankruptcy may not be as damaging to your credit as you may think.  If you are defaulting on your debts and falling behind on payments, you are already hurting your credit.  Filing bankruptcy sooner rather than later may be a preferred course of action for your credit situation.

We are a compassionate firm that is sensitive to your economic situation.  Contact us today for a free consultation.

​* Nothing on this page is legal advice, neither does it create an attorney-client relationship of any sort.  The material contained here is for informational purposes only.  Contact us for real legal advice and an opportunity to form a relationship with great attorneys.

chapter 7

 Also known as a "straight bankruptcy", in a chapter 7, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets. Accordingly, potential debtors should realize that the filing of a petition under chapter 7 may result in the loss of property.  The debtor may receive a discharge will losing any assets, if there are no assets available.

chapter 13

A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. If the debtor's current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period "for cause." If the debtor's current monthly income is greater than the applicable state median, the plan generally must be for five years. In no case may a plan provide for payments over a period longer than five years.  During this time the law forbids creditors from starting or continuing collection efforts.

discharge

The purpose of bankruptcy is to receive a discharge of debt.  This can happen a number of ways and depending on your case, you may be able to save even on secured debts.    Successful completion of all bankruptcy requirements is necessary to receive discharge, including completing credit counseling.