There are many types of debt and many types of debtors. There are three types of proceedings which are named after the specific chapter of the Bankruptcy Code that applies to their use. A Chapter 13 bankruptcy, also known as debt payer bankruptcy, involves creating a plan to repay debts and often to keep property on which the debt is based. This is available for individuals and married couples. This type of plan takes on average five years to complete. WE DO NOT DO THIS TYPE OF BANKRUPTCY.
A Chapter 11 bankruptcy which is also known as a reorganization may be used by individuals, corporations, other types of business, and it is usually used when the debtor is attempting to reorganize debts with creditors who often own the debtors equipment or business location. The debtor will create a plan and ask the court and sometimes the creditors to approve the plan, these plans usually take about five years to complete. WE DO NOT DO THIS TYPE OF BANKRUPTCY.
Then there is the Chapter 7 bankruptcy also referred to as a straight liquidation. This is available to individual debtors and business debtors. Individual debtors must meet specific criteria to fit into Chapter 7. Once you have started a bankruptcy case in Chapter 7 you have created a bankruptcy estate which now controls all your non-exempt property. A careless or unprepared filing of a Chapter 7 can cost you all your non-exempt equity and in some cases all your equity in your home. We will not let you file if you do not qualify. WE PROCESS AND FILE CHAPTER 7 CASES.
Chapter 7 Bankruptcy for Individuals
Chapter 7 Bankruptcy is for individuals whose financial difficulties are preventing them from paying their debts and getting on with their lives. The primary purpose of filing under chapter 7 is to have your debts discharged while keeping all or most of your property. It is particularly helpful if you are overwhelmed by credit card debt, personal loans, judgments, your wages are being garnished, your bank accounts are being levied by creditors or you are being harassed by creditors. The bankruptcy discharge relieves you after bankruptcy from having to pay many of your pre-bankruptcy debts. Chapter 7 provides individuals with a fresh start.
The Automatic Stay
Managing consumer debt can be overwhelming. The fear that every time the phone rings it will be from a creditor or bill collector. When you file for bankruptcy all collection efforts must stop, immediately. This is because the automatic stay is an injunction that protects you against all collection efforts by all creditors. The Automatic Stay as it is usually referred to will stop wage garnishments, bank levies, lawsuits, and other forms of creditor harassment.
Total Disclosure
Getting you out of debt is wonderful, but to be granted a discharge, you must be completely honest. You may not give your boat to your brother to pay for all the good things he has done for you. You may not sell the property to friends for pennies on the dollar. You also cannot keep the asset but not disclose your ownership. Dishonesty is simply not permitted and may be punished by the court.
We have successfully walked many people through this process effectively for years.
Chapter 7 Bankruptcy for Small Businesses
If your business is a corporation, or limited liability company (LLC), Chapter 7 bankruptcy provides a way to close and liquidate your company in a transparent manner. When you file a Chapter 7 on behalf of your business, it becomes the bankruptcy trustee’s responsibility to sell off the assets of the business and pay its creditors. Businesses do get a discharge.
