Bankruptcy

The first step in starting the bankruptcy process is to speak with an attorney about whether a bankruptcy is right for you and will achieve your goals. As an individual, you may consider a Chapter 7 or a Chapter 13. We can meet with you and do some pre-bankruptcy planning.

Chapter 7 bankruptcy is usually thought of as a "full bankruptcy." Chapter 7 bankruptcy will eliminate your debt and you may be able to keep all of your property. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) became effective on October 17, 2005. It has made it more difficult to discharge all debts in a Chapter 7, especially those debts incurred immediately before the bankruptcy is filed. You will also not be able to file a Chapter 7 bankruptcy is you have received a bankruptcy discharge in the last 6 to 8 years (depending on the type of bankruptcy you filed). Based upon your income, expenses and debt burden you might be required to file a Chapter 13 repayment (wage earner's) plan. There are certain types of debts that cannot (generally) be discharged in a Chapter 7: student loans, recent taxes, child support and maintenance, property division from a divorce, or personal injury claims (e.g. battery or injuries due to drunken driving).

Chapter 13 is an interest free (generally) repayment plan lasting 3 to 5 years. You can catch up on car payments and mortgage payments in an affordable manner. Most of your debts will require no payment at all. During the Chapter 13 you cannot be garnished by your creditors, nor can they force you to make payments outside of the Chapter 13 plan. The payments are structured to leave you enough money to be able to live and support yourself and your family in a dignified manner. In a Chapter 13 you may discharge debts owed to a former spouse for property division or the payment of marital debts.

We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy code.