BANKRUPTCY

These days, more and more people are finding themselves in financial trouble.  The combination of existing debt and a worsening economy has made it all too easy to lose control of your finances.  For those who are just making ends meet, situations such as unexpected medical bills, job loss, illness, injury, a reduction in hours, and/or an increase in the rate of interest on your mortgage can become the proverbial straw that breaks the camel’s back.

The decision to file for bankruptcy protection is not an easy decision to make.  There is almost nothing in life more stressful than financial problems.  Although it may not feel like it at the time, the decision to file bankruptcy is not just an emotional one.  It is a financial decision that is based on your current and anticipated future financial position.  The amount you owe, how much you make, and your present and future ability to repay your debts are all factors that play a part in this decision.  Consulting with an attorney can help you to step back from the emotions and keep the focus where it belongs – on your financial circumstances.

In October 2005, the existing bankruptcy laws were revised by The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (“BAPCPA”).  With the passage of BAPCPA, the laws governing the bankruptcy process became more restrictive and difficult to navigate.  However, relief is still available for those who need it.

Filing for bankruptcy protection is not about failure; it’s about a new beginning and starting over.  Filing for relief under the Bankruptcy Code will allow you to discharge certain debts and “start over” with a clean slate.

Under the federal Bankruptcy Code, there are several different methods of filing for bankruptcy protection.  The most common types of bankruptcy filed by individuals are Chapter 7 and Chapter 13 bankruptcies.

Chapter 7 Bankruptcy

Chapter 7 is also known as “Liquidation” and is the most commonly filed bankruptcy petition for individual bankruptcy.  Under Chapter 7, you file a petition requesting the court to discharge your unsecured debts, such as credit cards and medical bills.  In exchange for the discharge of debts, you give up any non-exempt property you own to the bankruptcy trustee, who will sell the non-exempt property and distribute the money to your creditors.  The law does provide for certain items to be exempt up to a specified dollar amount and will allow you to keep that exempt property Some of these items are your home, your car, personal possessions, pensions, retirement plans and wages.

Chapter 13 Bankruptcy

Chapter 13 is also called “Adjustment of Debt”.  Under Chapter 13 you file a plan with the court that shows how you will pay off some of your past-due and current debts over three to five years.  Most importantly, a Chapter 13 bankruptcy will allow you to keep property–especially your home and car–which might otherwise be lost during the bankruptcy process, provided you can make the payments required to be made to your creditors.  In the majority of cases, the required payments will be at least as much as your current, regular monthly payments plus some additional amount to catch up on the past-due amount.  In order to file under Chapter 13, you will need to show that you have enough income to meet your living expenses and to keep up with the required payments as required in your bankruptcy plan.

Other Bankruptcy Methods

Chapter 9 is for Adjustment of Debts of a Municipality.

Chapter 11 is also called “Reorganization” and is generally used by businesses in order to continue to do business while repaying creditors through a court-approved reorganization plan.  It can also be used by certain individuals whose debts exceed the Chapter 13 debt limits.

Chapter 12 is for Adjustment of Debts for Family Farmers or Fishermen with regular income.

Chapter 15 is applicable to bankruptcy cases dealing with cross-border insolvency (U.S. and one or more foreign countries).

The circumstances surrounding your specific situation will dictate which bankruptcy method would be the most beneficial to you.

Some of the ways our attorneys can assist you throughout the process include:

• Analyzing your specific financial situation.
• Advising and assisting you in determining whether to file a petition under the Bankruptcy Code and, if so, which Bankruptcy chapter would be most applicable to your situation.
• Providing information on what you can expect during the Bankruptcy process.
• Preparing and filing your petition, including all schedules, statement of financial affairs and other documents as required.
• Providing a listing of court-approved credit counseling and personal financial management companies.
• Preparing you for and accompany you to the mandatory 341 Meeting of the Creditors.
• Represent you at confirmation hearings (depending on type of bankruptcy petition filed).

Please contact our office for more information on how we can help you get a fresh start.

Evening and Weekend appointments are available for your convenience.

We are a federally designated Debt Relief Agency.

We assist people to file for relief under the Bankruptcy Code.

Call Us Today: (847)245-2336