Bankruptcy Information

CHAPTER 7

This type of Bankruptcy allows a debtor to "discharge" or eliminate debt to obtain a fresh start. An analysis is performed by our office to ascertain your household income and your assets to determine whether this Chapter is correct for you.

CHAPTER 13

This type of Bankruptcy is a "reorganization" of your debts, allowing you to pay part or all of your debt under the protection of the Bankruptcy Court. An analysis is performed by our office to ascertain your household income and assets. Depending on our household income and assets, this Chapter may be the one for you.

PROTECTION
Either Bankruptcy Chapter stops the nasty phone calls, harassing letters, garnishing wages, seizure of bank accounts, repossession and foreclosure.

REAL ESTATE
If you own real estate which is currently mortgaged, the real estate can be retained. However, you must continue making payments on time to the mortgage holder.

AUTOMOBILES
If you own an automobile which is currently financed, the automobile can be retained. However, you must continue making payments on time to the finance company.

ASSET EXEMPTION
Certain assets are exempt when a petition in Bankruptcy is filed. These exemptions include $50,000 equity in real property ($100,000 joint); $2,400 in equity in an automobile; $7,500 for personal injury; $2,500 in cash assets; household furnishings; clothing.

DEBTS IN BANKRUPTCY
You must disclose all debts owed, including student loans, whether or not you wish to discharge them. The Bankruptcy Petition deals with bills from prior to the filing, any debts after filing are your responsibility. Payments for usual living expenses such as rent, food, clothing and utilities are still paid by you.

TIMELINE
Please call our office for a consultation regarding your filing a Chapter 7 or Chapter 13 Petition. At the consultation you will learn more about each Chapter and how it fits your situation. You will receive an informational packet from us as well. Should you wish to proceed, you will gather up the necessary information and provide it to our office. We then prepare your paperwork, which you will review before filing the Court. Upon filing, the Court issues an automatic stay which protects you from creditors. A few weeks later we appear before a Trustee at a meeting to answer questions about income and assets, then you receive your discharge. In a Chapter 7 case, that is within several months. In Chapter 13, this is at the end of your reorganization payment, between 36 to 60 months. We will be there with you until the end no matter which Chapter of Bankruptcy you file.