Bankruptcy

Filing Chapter 7 Bankruptcy

If you are finding that your monthly income is exceeded by your monthly expenses or if you foresee that happening in the near future, our firm can help to evaluate your individual situation and devise a strategy that may provide relief from your financial worries.

In some cases, the best strategy may involve filing for bankruptcy. Very often bankruptcy affords the individual or corporation that long sought-after fresh start.

Advantages of Chapter 7 Bankruptcy

The majority of those who seek protection from bankruptcy do so by filing Chapter 7.

A Chapter 7 filing affords the Debtor three advantages over the other available bankruptcy Chapters:

  1. The Debtor is often only in bankruptcy for approximately 4-5 months. This short time frame enables the Debtor to begin rebuilding his or her credit sooner. Our firm’s experience has been that after approximately two years a debtor’s credit scores usually improve to the point where he or she can once again enter the housing market.
  2. Filing for Chapter 7 bankruptcy protection provides the Debtor with the greatest debt relief. Filing for Chapter 7 allows the Debtor to relieve him or herself of all dischargeable debt while very often allowing the Debtor to retain most, if not all, of his or her possessions.
  3. Filing for Chapter 7 can be the least expensive approach to seeking bankruptcy protection.

Filing Chapter 13 Bankruptcy

Though a typical Chapter 13 Debtor will be in bankruptcy for approximately 3-5 years, filing for Chapter 13 offers the Debtor a unique opportunity to retain assets that might have otherwise been lost in a Chapter 7 filing, while still alleviating the Debtor from a large portion of his or her debt. Very often filing a Chapter 13 is the best approach to take by those who wish to try to retain their home.

By filing Chapter 13, a Debtor is committing to relinquish to the Bankruptcy Trustee all of his or her future disposable monthly income. In turn, each month, the Trustee will take those payments and pay, on a pro rata basis, a portion of the debt owed to the Debtor’s creditors. In exchange for the Debtor making these payments to the Trustee under the Plan, any debt remaining after the final monthly payment is made, will be discharged and will no longer be owed by the Debtor.

Filing Chapter 11 Bankruptcy

Typically filed by companies or individuals with a more sizable amount of debt, Chapter 11 offers the Debtor a chance to reorganize their finances and get back on track. In comparison, the process of filing for Chapter 11 is more involved and complex and should only be structured by a seasoned and knowledgeable bankruptcy attorney.