ARE YOU SEARCHING FOR DEBT RELIEF OR REORGANIZATION? BANKRUPTCY MAY BE THE ANSWER!

BANKRUPTCY

     The United States Constitution in Article I, Section 8, Clause 4, authorizes Congress to enact "uniform laws on the subject of bankruptcies throughout the United States".  Although the Bankruptcy Code provides for six types of Bankruptcy, most people file one of two types of bankruptcy, Chapter 7 (also known as a "straight bankruptcy" or a "liquidation bankruptcy") or Chapter 13 (a "wage earner" bankruptcy).

     Under Chapter 7, a bankruptcy filer (called a “debtor”) will be required to sell or liquidate his/her assets through a neutral person called a Trustee who is appointed to collect the debtor's assets sell them and with the proceeds repay the debtor's creditors.  Afterwards the debtor receives a discharge of most of his/her debts. This means that the debtor is then no longer legally responsible for paying the debts that have been discharged. Certain debts like child support, alimony, certain taxes and student loans can not be discharged in bankruptcy.

     In a Chapter 13 bankruptcy , a debtor, who has enough income to have disposable income after paying his/her monthly living expenses and wishes to keep certain property (oftentimes a house, a car or furniture) proposes a repayment plan to pay his/her creditors in single monthly payments for a period of 36 to 60 months.   Like chapter 7, certain debts can be discharged in a Chapter 13 bankruptcy.

     Companies that are unable to pay their debts but want to stay in business file Chapter 11 bankruptcy so that they can "reorganize" their debts under supervision a Trustee and the Bankruptcy Court.

While the Bankruptcy Court allows you to represent yourself to file a bankruptcy it is wise to hire a bankruptcy attorney who can help you decide if filing bankruptcy is the right choice for you.  Additionally, a bankruptcy attorney will help you determine which bankruptcy - chapter 7, chapter 11 or chapter 13 - is right for you.

     Click here for a free bankruptcy consultation or contact us for a face to face bankruptcy consultation. 

Chapter 13 Bankruptcy FAQ's       Chapter 7 Bankrupcty FAQ's .

Important Bankruptcy Facts:

• Immediately upon filing bankruptcy an "Automatic Stay" is imposed so that certain actions by creditors to collect are interrupted.  For example, if your mortgage payments are late and the mortgage company has referred the matter to their attorneys to foreclose, the foreclosure action is suspended pending the outcome of the bankruptcy.  They can not continue the foreclosure proceedings while your bankruptcy is pending without the Bankruptcy Court's permission.
• After the Automatic Stay collection agencies must stop calling to harass you about your bills!!
• Once your chapter 13 plan of repayment is confirmed and you complete the plan, you will have successfully saved your home from foreclosure! 
• If a foreclosure judgment has been entered against you but your house has not yet been sold at a sheriff sale, you can still keep your house if your bankruptcy attorney files a bankruptcy petition before the sale!!!
• If your house is in foreclosure, do not wait until the day of or after the Sheriff sale to seek advice!
• In order to qualify to file a chapter 7 bankrupcty a debtor must take a means test that determines whether a debtor qualifies.  If the debtor does not qualify he or she can still file a chapter 13 bankruptcy.
• The filing fee for a Chapter 7 bankruptcy is: $ 299.00.
• The filing fee for a Chapter 13 bankruptcy is: $ 274.00.
• The filing fee can be paid in installments with the Bankruptcy Court's permission.
• Under the new bankruptcy law, the Bankruptcy Abuse Provention and Consumer Protection Act of 2005, everyone who intends to file a bankruptcy must receive credit counseling at least 180 days before filing and must take a Credit Education Course before receiving a discharge of his/her debts. 
• Click here for a list of approved credit counselors http://www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm