areas of expertise

Wills & Trusts
Probate
Personal Injury
Divorce & Child Custody
Business Law
Bankruptcy

Firm Overview
Martindale-Hubbll Rating

about our firm

Bankruptcy

Bankruptcy is FEDERAL LAW that allows one to get a fresh start if they have more debt than they can handle. It allows you to eliminate or reorganize debt without losing possessions. Most people are very confused about what Bankruptcy involves. The Bankruptcy laws are designed to alleviate the pressure of your debts and make your life better.

Chapter 7 Bankruptcy

Typically, Chapter 7 is referred to as "liquidation" because you turn over non-exempt property to the trustee assigned to your case. Some confusion lies in the fact that MOST PROPERTY IS EXEMPT. Exempt property means it is not subject to attachment by creditors or in a bankruptcy, which means you get to keep it. The exemptions vary by state, and you should consult an attorney to determine what property may be claimed exempt in your state. In most situations, if you wish to keep houses or cars, you simply maintain your payments as scheduled to the creditor. Chapter 7 is generally the simplest and quickest form of bankruptcy. Most people receive their discharge within 5-6 months of filing the case.

Chapter 13 Bankruptcy

Chapter 13 is a consumer debt reorganization. This allows debtors to restructure payments by combining many debts into their "plan" and paying ONE monthly payment to a Chapter 13 Trustee for all debts included in the plan. Regular mortgage payments continue to be made directly to the creditor "outside" the plan. Thus, if you have mortgage arrears, the arrears CAN be included in the plan, but the future payments due under the loan must ALSO be made separately. The debtor keeps his property and makes payments to the trustee out of future income to pay all or a portion of his debt over the life of the plan.

Chapter 13 is usually appropriate for people who have fallen behind on secured loans (such as cars or houses) and need to catch up before repossession or foreclosure. It may also be appropriate when someone has non-exempt property that cannot be protected in a Chapter 7, or if someone has sufficient disposable income to pay a significant portion of their debt over time. Many factors go into determining if a debtor qualifies for or should pursue a Chapter 13 filing. You should consult an attorney before deciding if this avenue is right for you.

We are a debit relief agency. We can help people file for bankruptcy relief under the Bankruptcy Code. Contact us to learn more!