Bankruptcy

You can still stop foreclosures and bill collectors.  We represent clients in Chapter 7 or Chapter 13 Bankruptcy cases.  The most common reasons clients often accumulate huge debt include: uninsured medial expenses, unemployment, illness, injury or disability, divorce or separation, or a failed business enterprise.  Call today for a free in-office initial consultation.

Chapter 7

A Chapter 7 Bankruptcy is the most common type of bankruptcy.  In a Chapter 7 case, a Chapter 7 Trustee is appointed to evaluate whether the Debtor has any non-exempt assets which could be liquidated to pay the claims of creditors.  In a Chapter 7 Bankruptcy, Debtor’s are allowed to retain certain “Exempt Assets” including clothing, household goods, retirement funds and specified amounts of equity in a homestead and motor vehicle.  In most cases, the Bankruptcy Court enters a Discharge Order which discharges the Debtor’s debts within approximately 3 ½ months after the bankruptcy case is filed.

 Chapter 13

A Chapter 13 Bankruptcy is a more complex type of bankruptcy case in which the Debtor proposes a Chapter 13 Plan to repay all or a portion of his debts over a period of 3 to 5 years.  If the Chapter 13 Plan meets all the requirements of the Bankruptcy Code, the Bankruptcy Court will confirm the plan.  After the Debtor has completed all of the payments under the Chapter 13 Plan, the Bankruptcy Court will enter a Discharge Order with respect to any remaining debts.  Chapter 13 Bankruptcies may be used to cure delinquent mortgage payments over the term of the Chapter 13 Plan.  You can file a Chapter 13 Bankruptcy even if you have filed a Chapter 7 Bankruptcy in the last 8 years.  Call today for a free in-office initial consultation.

Changes Under the New Bankruptcy Laws

Contrary to some news articles, Credit Cards can still be discharged in bankruptcy.  In October of 2005, the “Bankruptcy Abuse Prevention and Consumer Protection Act of 2005” took effect.  This new bankruptcy law has caused a great deal of concern to consumer advocates who feared that it would drastically limit the ability of consumers to get out from under overwhelming debt.  Fortunately, however, it is still possible for consumers suffering from unwieldy debt loads to discharge their debts, including credit card debts in either Chapter 7 or Chapter 13 Bankruptcy.  The law does, however, make filing bankruptcy more complicated and thus more expensive.