Trusted Bankruptcy Attorney
We have more bankruptcy experience so clients get better results. Why would you trust your home, your car, your paycheck to just anyone? You need a bankruptcy expert, and we are bankruptcy experts. We are highly respected and recommended by the court, the judges, and the bankruptcy trustees and often receive referrals from other bankruptcy attorneys when a case is more complicated than they can handle.
What Is Bankruptcy?
Bankruptcy is a legal proceeding in federal bankruptcy court by which a person who has more debts than he or she can pay seeks relief from those debts. The right to file a bankruptcy exists under the law, and this law was designed mainly to take care of serious problems with debts and to allow a fresh financial start.
There are two Chapters of bankruptcy that consumers use. Chapter 7, (commonly called “total” bankruptcy), and Chapter 13, which is a consolidation and repayment program. In Chapter 7 bankruptcy, a Trustee sells the debtor’s property (other than exempt property) and uses the sales proceeds to pay creditors. The result of a successful bankruptcy proceeding is a discharge in bankruptcy, which releases the debtor from payment of affected debts. Chapter 13, which consolidates debt, allows payments to be made for up to 5 years to pay off the consolidated debt. The plan suspends legal and collection actions against the debtor for the period it is in effect, and may also suspend such actions against persons who co-signed loans with the debtor.
Who Can File for Bankruptcy?
In general, any person or business can file for bankruptcy. There is no minimum amount of debt required; however, in most cases, a person who files does owe considerably more in debts than he or she can pay. To determine which Chapter will work best for you, give us a call. We can help.
The federal government passed new bankruptcy reform legislation in October 2005. However, don’t be discouraged! Most studies indicate that the new law affects less than 15% of individuals who could have filed previously. If you are feeling overwhelmed by your debts and considering filing bankruptcy, it is highly probable that you fall into the category of the 85 percent of people who are still eligible to file.