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Bankruptcy

If you are overwhelmed with debt filing for relief either under Chapter 7 or Chapter 13 of the Bankruptcy Code may be the answer. A number of people need to file bankruptcy because of credit card debts, medical bills, or lawsuits. Some or all of these debts may be extinguished by filing the appropriate bankruptcy. You can stop harassing telephone calls from your creditors as well as certain lawsuits which are brought to collect on the debt.

Depending on the circumstances you may be able to keep your home, automobile and certain personal property. A debtor is entitled to exempt certain property under either state or federal bankruptcy laws. The choice of exemptions chosen will depend on each individual circumstance.

The Bankruptcy Code was revised in 2005 and a large number of people or corporations can still seek protection from their creditors either under Chapter 7 (commonly referred to as a liquidation bankruptcy). In this type of bankruptcy all of the non-exempt assets of the debtor are gathered together and sold by the bankruptcy trustee. In most cases these types of cases are referred to as no asset cases as the debtor has retained certain exempt assets and there are no assets available for the creditors.

A Chapter 13 bankruptcy (payment plan) involves putting together a plan for repayment of all or a certain portion of the debts to the creditors. The debtor makes payments to a chapter 13 trustee who then divides the payments among the creditors of the debtor.

For those seeking to reorganize their business or affairs a Chapter 11 Bankruptcy filing may be the answer. Chapter 11 Bankruptcy allows the debtor to extinguish certain contracts and allows the debtor to put together a plan to pay all or certain debts owed to its creditors.

In some cases, I may negotiate with your creditors in order to provide you with an opportunity not to file for bankruptcy. Some creditors will prefer to get something from the debtor without the formality or formal legal proceedings of a bankruptcy.