CHAPTER 7 (STRAIGHT BANKRUPTCY)
Contrary to what many will tell you the bankruptcy process is very simple and straight forward when you work with attorneys and staff that know the law and have the right software to process your information. The information that follows is calculated to give you some basic insight into the nature of this type of bankruptcy. More detailed explanations will be available by going to the “Contact Us” menu button at the top of the website and speak with one of our bankruptcy attorneys or a bankruptcy paralegal.

In a chapter 7 case, the bankruptcy court appoints a trustee to examine the debtor's assets to determine if there are any assets not protected by available "exemptions". Exemptions are laws that allow a debtor to keep, and not part with, certain types and amounts of money and property. For example, exemption laws allow a debtor to protect a certain amount of equity in the debtor's residence, motor vehicle, household goods, life insurance, health aids, retirement plans, specified future earnings such as social security benefits, child support, and alimony, and certain other types of personal property. If there is any non-exempt property, it is the Trustee's job to sell it and to distribute the proceeds among the unsecured creditors. Although a liquidation case can rarely help with secured debt (the secured creditor still has the right to repossess the collateral if the debtor falls behind in the monthly payments), the debtor will be discharged from the legal obligation to pay unsecured debts such as credit card debts, medical bills and utility arrearages. However, certain types of unsecured debt are allowed special treatment and cannot be discharged. These include some student loans, alimony, child support, criminal fines, and some taxes. In addition to attorney fees, there is a filing fee that must be paid to the Bankruptcy Court and fees that have to be paid through your attorney to an approved credit counseling Agency. All of this will be explained in more detail if you call us or when you get to the “Getting Started” part of the menu of this website.

CHAPTER 13 (Individual Reorganization of Debt)
In a Chapter 13 case, the debtor puts forward a plan, following the rules set forth in the bankruptcy laws, to repay certain creditors over a period of time, usually from future income. A Chapter 13 case may be advantageous in that the debtor is allowed to get caught up on mortgages or car loans without the threat of foreclosure or repossession, and is allowed to keep both exempt and nonexempt property. The Debtor's Plan is a document outlining to the bankruptcy court how the debtor proposes to dispose of the claims of the debtor's creditors. The debtor's property is protected from seizure from creditors, including mortgage and other lien holders, as long as the proposed payments are made and necessary insurance coverage remains in place. The plan generally requires monthly payments to the Bankruptcy Trustee over a period of three to five years. Arrangements can be made to have these payments made automatically through payroll deductions. In addition to attorney fees, there is a filing fee that must be paid to the Bankruptcy Court and fees also have to be paid through your attorney to an approved credit counseling Agency and/or special requirements may be imposed by the Bankruptcy Trustee to attend a class that he and his staff offer. The purpose of this class is to streamline the understanding of the process for both of you so your case will administratively process through more smoothly.

Many clients start out in a Chapter 13 Plan and then have to “convert” their Chapter 13 to a Chapter 7 “straight bankruptcy, but your attorney can better explain the subtle details and options if you give us a call on our toll free line. No matter what, we remain connected to you throughout the entire process and if there are any difficulties, we can help get them corrected so your case will proceed to a successful conclusion. What is critical to remember is that by maintaining good communication with us throughout this process, we will be able to explain all your options and make sure we are making the very best choices available under the Bankruptcy Code. The features of this site are laid out in a way that will always provide you the best communication possible through the “Contact Us” page.

CHAPTER 11 (Corporate Reorganization)
This is a specialty are for our firm and will require corporate legal counsel or management to contact us individually by phone. This site is not currently geared to address this type of filing and since it pertains most commonly to large corporations, it isn’t relevant to most of our site users to take time explaining this part of the Bankruptcy Code. The Bankruptcy Basics brochure prepared by the Administrative Office of the United States Courts, dated June 2000, will provide more information and can be accessed over the internet by visiting: www.uscourts.gov/bankruptcycourts.html

CHAPTER 12 (Farm Debt Reorganization)
Chapter 12 of the Bankruptcy Code was enacted by Congress in 1986, specifically to meet the needs of financially distressed family farmers. The primary purpose of this legislation was to give family farmers facing bankruptcy a chance to reorganize their debts and keep their farms. However, as with chapter 11, since chapter 12 does not usually pertain to individuals whose debts are primarily consumer debts, further information about chapter 12 will be provided to interested parties by calling us at our toll free number on the “Contact Us” section of our website. Interested parties can also make reference to the same "Bankruptcy Basics" brochure that we referred to above: www.uscourts.gov/bankruptcycourts.html. Again, this form of bankruptcy is something we can and do handle, but it is not something we handle over this website at the present time. Call to speak to one of our attorneys if you require more information.

WHAT BANKRUPTCY CAN DO FOR YOU
Discharge liability for most or all of their debts and get a fresh start. When the debt is discharged, the debtor has no further legal obligation to pay the debt.

Stop foreclosure actions on their home and allow them an opportunity to catch up on missed payments.

Prevent repossession of a car or other property, or force the creditor to return property even after it has been repossessed.

Stop wage garnishment and other debt collection harassment, and give the individual some breathing room.

Restore or prevent termination of certain types of utility service.

Lower the monthly payments and interest rates on debts, including secured debts such as car loans.

Allow debtors an opportunity to challenge the claims of certain creditors who have committed fraud or who are otherwise seeking to collect more than they are legally entitled to.

WHAT BANKRUPTCY CANNOT DO FOR YOU
Eliminate certain rights of secured creditors. Although a debtor can force secured creditors to take payments over time in the bankruptcy process, a debtor generally cannot keep the collateral unless the debtor continues to pay the debt.

Discharge types of debts singled out by the federal bankruptcy statutes for special treatment, such as child support, alimony, student loans, certain court ordered payments, criminal fines, and some taxes.

Protect all cosigners on their debts. If relative or friend co-signed a loan which the debtor discharged in bankruptcy, the cosigner may still be obligated to repay whatever part of the loan not paid during the pendency of the bankruptcy case.

Discharge debts that are incurred after bankruptcy has been filed.

BANKRUPTCY'S EFFECT ON YOUR CREDIT
By federal law, a bankruptcy can remain part of a debtor's credit history for 10 years. Whether or not the debtor will be granted credit in the future is unpredictable, and probably depends, to a certain extent, on what good things the debtor does in the nature of keeping a job, saving money, making timely payments on secured debts, etc. That is the bad news, the good news is that you are in the best position possible after coming out of bankruptcy and we can assist you in making recommendations for the restoration of your credit reputation. Contact us on the Toll Free number for further explanation.

That is the overview of bankruptcy. The rest will depend on your individual situation so there is no point in standing around… you have gone this far…CALL US by phone by going to “Contact Us” menu button and getting your free consultation with one of our attorneys and then we can get started!!