We will always pursue other options, but there are times when your creditors will leave you no option other than to seek protection under the Bankruptcy Code.  When that becomes your only option, we will help you choose the right type of bankruptcy based on your individual needs.

Chapter 7  Bankruptcy Liquidation

In a bankruptcy case under Chapter 7 of the U. S. Bankruptcy Code, you file a petition asking the court to discharge your debts.  As with all other bankruptcies we file, the moment the petition is filed with the U. S. Bankruptcy Court all of your creditors must stop calling or otherwise harassing you.  If they continue to contact you they will be subject to sanctions by the Court.  The basic idea in a Chapter 7 bankruptcy is to wipe out or “discharge” your debts. Only in unusual cases will you need to give up property except for “exempt” property which the law allows you to keep. In most cases, all of your property will be exempt.

If you want to keep property like a home or a car and are behind on the payments on a mortgage and the lender will not work with you, then a Chapter 7 case probably will not be the right choice for you. That is because Chapter 7 law does not eliminate the right of mortgage holders or car loan creditors to take your property to cover your debt.

Chapter 11 Bankruptcy  – Reorganizations for Businesses

Chapter 11 is also termed as Reorganization and is directed for reorganization of a business and also for some consumer debts with significant debts.   The provisions of  a Chapter 11 bankruptcy are very complex.

Chapter 13 Bankruptcy – Reorganization for Individuals

In a Chapter 13 case you file a “plan” showing how you will pay off some of your past-due and current debts over three to five years. The most important thing about a Chapter 13 case is that it will allow you to keep valuable property — especially your home and car if you are behind on payments — which might otherwise be lost, if you can make the required payments. Your Chapter 13 plan payments will be at least enough to pay your past due mortgage payments, a percentage of your unsecured debt, and the trustee commission of about 3% of all plan payments. You must also make all future mortgage and car payments, in addition to the plan payments, if you wish to keep the property or car. The most important thing about a Chapter 13 case is that it will allow you to keep valuable assets which might otherwise be lost if you can make the required payments. Chapter 13 can also be useful for discharging certain debts, like taxes, which may not otherwise be discharged in a Chapter 7