Bankruptcy

 
PLEASE NOTE:  The information contained in these pages should not be construed as legal advice.  It is merely a brief overview of what you can expect.  Bankruptcy is a complex process with many details.  You should consult our offices for a full analysis of your situation to determine if bankruptcy is right for you.

An Overview

For various reasons, a debtor may not be able to proceed in a negotiation process to settle debts. Those individuals may need to turn to bankruptcy for relief.

Bankruptcy is a process that was set up under the authority of the United States Constitution through which debtors may be able to have a portion or all of their debts discharged eliminating personal liability on those debts. This provides the debtors with what is known as a “fresh start.”

This concept of a fresh start causes some confusion. Many believe that when discharged from a debt, they do not have to pay on any debts. This is true for debts that are considered “dischargeable.” Various debts, such as certain taxes and certain student loans are not dischargeable. Debtors are still required to pay on these debts to avoid any collection actions.

Some debtors also believe that a discharge in bankruptcy “wipes out” a mortgage or other liens against property. While it is true that a discharge in bankruptcy may discharge debtors of the personal liability associated with such debts, certain property may still be subject to the debts. If this is the case, the creditor may be able to request that the court allow them to pursue the property while the bankruptcy is pending or they may choose to do so once the case is closed. Maintaining current payments on the debt may avoid such actions. Agreements may also be entered into during the bankruptcy, but these should be discussed with our offices to see if they are right for you.

Types of Bankruptcy

There are several ways in which an individual may file for bankruptcy. The two most common forms of bankruptcy for an individual are Chapter 7, the “liquidation” chapter, and Chapter 13. A brief description of these chapters may be found at the following links.

• Chapter 7 Bankruptcy
• Chapter 13 Bankruptcy

What you Need

Bankruptcy requires many details regarding your financial status. Prior to engaging our attorneys you should prepare yourself with the information necessary to conduct a thorough analysis of your situation.

Some of the items that you should have when contacting our offices include the following:

• Pay stubs for the last six (6) months
• A breakdown of your monthly expenses
• A list of all property that you own
• A list of all of your debts

This information will allow our attorneys to provide you with a preliminary analysis of your situation so that we may help you decide on which course is right for you.

Your Property

Your property is, of course, a major concern when contemplating filing a bankruptcy.  Under either chapter, the Bankruptcy code has provided a means by which to protect your personal property and real estate.  These protections are known as exemptions. The exemptions are relatively complicated to understand and you should discuss how they apply to your property with our attorneys.

What’s Next

Call our offices. We have experienced attorneys and staff that can answer your questions and help you determine if bankruptcy is right for you or whether you should explore our bankruptcy alternatives. Prior to filing a bankruptcy consumers are required to participate in a consumer credit counseling session.  For more information regarding these sessions, please contact our offices.

The following notices are required to be reviewed by consumer debtors prior to filing for bankruptcy and are intended to provide you with a better understanding of the process.  Take the time to review these notices by clicking on the links below:

• Notice to Debtor(s) Regarding Bankruptcy and Credit Counseling
• Important Information About Bankruptcy Assistance Services from an Attorney or Bankruptcy Petition Preparer
• Notice to Debtor(s) Regarding Accuracy of Information

Whether you are considering filing Chapter 7 or Chapter 13 bankruptcy, we can be your bankruptcy consultant. Even if you are considering a bankruptcy alternative, such as debt negotiation, we are a great resource to help you along the path toward financial freedom. There is a light at the end of the tunnel, and we are here to assist you in making the best decisions for your particular situation and reaching that destination.