What is bankruptcy?
Bankruptcy is a proceeding under federal law that grants partial or complete relief from the payment of your debts. Upon filing the bankruptcy petition all creditor collection activities are stopped. The Bankruptcy Court enters an order relieving you from responsibility for paying certain debts.
What are some situations that might be helped by bankruptcy?
If you are experiencing financial difficulty, our firm may be able to help you. We can help if you are:
- Harassed day after day by creditor calls
- Behind on mortgage payments or facing foreclosure
- Behind on car payments or facing repossession
- Overwhelmed with credit card debts and never ending minimum payments that barely make a dent in the total balance
- Having your pay check or bank accounts garnished by judgment creditors
- In debt because of a failed marriage or co-signed loans
- Overwhelmed with high interest rates on finance company or personal loans
- Stuck in the "pay check advance" cycle
- Have back taxes that require a payment plan
There are three types of bankruptcy cases --- Chapters 7, 11, and 13. Separate pages explaining each Chapter in detail can be found on this website. A brief summary follows:
Chapter 7
The goal for individuals who file Chapter 7 is to free themselves of debt through a bankruptcy discharge. Although businesses normally do not receive a discharge, corporations and partnerships may use Chapter 7 to liquidate and close their business.
Chapter 11
Corporations, partnerships, and sole proprietors wishing to remain in business and reorganize their financial affairs may file Chapter 11. These debtors seek to restructure their debts, either by reducing the debt or by extending the time to repay. A Chapter 11 plan can also be used to liquidate all or a portion of a debtor's assets.
Chapter 13
Chapter 13 is for individuals with regular income who want to reorganize their financial affairs. The debtor proposes a repayment plan, say to catch up on the arrears on their home mortgage. Only individuals and sole proprietors are eligible for Chapter 13, which is simpler and much less expensive than a Chapter 11.
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