Bankruptcy

We live in a turbulent financial world. Debts can arise due to divorce, medical emergencies, loss of a job, overuse of credit cards or unforeseen events. Regardless of the reasons for your debts, bankruptcy is a remedy provided by law. In many instances it is the best remedy.

A Chapter 7 Personal Bankruptcy involves an individual or married couple seeking the protection of the Bankruptcy Laws where they are drowning in debt and offers a fresh start by eliminating their debts through a Discharge. Lawsuits, levies, garnishments and enforced collection actions stop when you file. A Chapter 7 Bankruptcy proceeding may be completed in as little as two to three (2-3) months after it is filed. Once a Chapter 7 Bankruptcy is filed, creditors must immediately cease all efforts to collect a debt including continuation of any law suits, wage garnishments, bank levy or harassing telephone calls and letters.

While a Chapter 7 Bankruptcy is known as a “liquidation proceeding”, in most cases individuals have no assets that would be “liquidated”. There are significant protections offered under the Bankruptcy Laws where clients can often keep their homes, personal assets, retirement funds and automobiles. You must be eligible to file for bankruptcy and the rules vary depending on the type of case to be filed. We provide a thorough analysis and explanation of the law to determine the right course of action for each client.

Chapter 13 Bankruptcy is a reorganization of debts designed to help property owners keep their homes, cars and other valuable assets while getting some relief relative to their debts. A Chapter 13 may help stop foreclosures, repossessions, wage garnishments and debt lawsuits. There may also be a significant reduction or elimination if unsecured debt (credit card debt, etc….).

A Chapter 13 Bankruptcy allows a filer to consolidate, prioritize, repay, and, in some cases, reduce or eliminate old debts while receiving the powerful protection against creditors that the Bankruptcy Laws provide. Instead of dealing with multiple creditors and bills, Chapter 13 creates a single repayment plan that is managed by the court. One of the most frequent reasons for filing a Chapter 13 Petition and Plan is to allow a homeowner to avoid foreclosure and the loss of their home. A Chapter 13 Bankruptcy prevents foreclosure if a homeowner can resume making their regular monthly mortgage payments, property taxes and insurance and make up the arrears on their mortgage over a period of 36 to 60 months.

Chapter 13 also prevents other creditors from collection activities such as creditor harassment, law suits, wage garnishment and auto repossession. Depending on the type of debt owed by you, your income and your assets, the Plan filed by you may provide that other debts be repaid at no interest over the life of the plan or that only a percentage of the amount owed be repaid or in some cases, no repayment is required.