Bankruptcy Law (Chapter 7 and Chapter 13)
I am accepting new clients for Chapter 7 or Chapter 13 Bankruptcies.
There are four types of bankruptcy cases provided under the law. Most people filing bankruptcy will want to file under either Chapter 7 or Chapter 13. Chapter 11, known as "reorganization" is used mainly by businesses - See other tab. Chapter 12 is reserved for family farmers and fishermen.
Chapter 7 is known as "straight" bankruptcy or "liquidation." It requires an individual to give up property which is not "exempt" under the law, so the property can be sold to pay creditors. Generally, those who file chapter 7 keep all of their property except property which is very valuable or which is subject to a lien which they can not avoid or afford to pay. The law prohibits most creditors from attempting to collect on your debts once you have filed bankruptcy. Because this rule would also apply to your lawyer, all legal fees and costs for Chapter 7 filings must be paid before your case is filed.
Chapter 13 is a type of "reorganization" used by individuals to pay all or a portion of their debts over a period of years using their current income. You should consider filing under Chapter 13 if you 1) own your home and are in danger of losing it because of money problems; 2) are behind on debt payments, but can catch up if given some time; or 3) you have valuable property which is not exempt and you can afford to pay your creditors over time. In Chapter 13 you are required to file a repayment plan which lasts for either three or five years. Your legal fees will be greater for Chapter 13 because the time and work required is significantly more than for a Chapter 7 filing. However, your upfront legal fees may be less because part of your legal fees can be paid over time through your repayment plan.
If you want an attorney to handle your bankruptcy who listens to your needs and cares about you, call me for a no cost, no obligation consultation. I offer competitive rates and personalized service.
Resources
Answers to Common Bankruptcy Questions
Your Legal Rights During and After Bankruptcy
Using Credit Wisely After Bankruptcy
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