In today’s bad economy, many people face serious financial problems that poison their lives. Bankruptcy is an option available for those who seek a relief of financial distress, but it is not the only available option. Before filing for bankruptcy, you should know what it means and entails. We will counsel you about other options of improving your financial situation, such as debt settlement, mortgage/loan modification, various types of credit and costs of credit, consumer rights, credit related issues after divorces, property tax adjustment. Do not be afraid to explore all the options available to you and we will guide you through the process of creating a game plan that will bring you success and peace.
Chapter 7 is the more common form of bankruptcy and it often results in a relief from most debt. In such case, the debtor’s assets are turned over to a bankruptcy trustee who will sell them and distribute the proceeds to the creditors. In order to qualify for Chapter 7 bankruptcy, a debtor must attend mandatory credit counseling and pass the “Means Test”, which determines whether debtor’s income is in excess of certain thresholds. We help you understand what debts may be discharged by bankruptcy and what may not. Chapter 7 bankruptcy also provides an opportunity to protect certain property from the bankruptcy proceedings – exempt property. We analyze each and every case to decide how to lawfully keep as much of your property as possible out of the reach of your creditors. In particular, we address the biggest concern which is how to save your home in a bankruptcy proceeding.
Chapter 13 is used by individual debtors with a stable source of income. Chapter 13 is very different from Chapter 7 because it allows the debtor to keep most of the valuable assets but the debtor does not get immediate discharge of the debts. Under Chapter 13, the debtor can propose a plan of repayment of debts to the creditors over a period of time, usually three to five years, which must be approved by the Court. The debtor must complete the proposed plan of repayment before the debts are discharged. While the plan is in effect, the creditors are prohibited from suing debtors and bringing other actions. In addition, debtors, who do not qualify to file for bankruptcy under Chapter 7, may file under Chapter 13, since there is no requirement to pass the “Means Test”.
We help you understand the effects of the bankruptcy law, particularly the rules governing how much of your income you must use to repay debts. We also work very hard to propose a payment plan that would be acceptable to the Court and we discuss what happens in the event that you cannot keep up with your payments under the plan.
Chapter 11 is used primarily by commercial entities that are able and willing to continue operating a business and simultaneously repay creditors through a court-approved plan of reorganization. Under the court-approved plan, the debtor can repay some debts and discharge others. The debtor can also terminate certain contractual obligations, recover assets, and reorganize its business to increase profitability. As a result of Chapter 11, the business is reorganized and the debt load is reduced.
