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Let’s talk Bankruptcy.

The federal government passed the bankruptcy code to protect and aid persons and businesses who find themselves trapped in a situation in which they can not survive without help. It can also allow a way to restructure their debts to the benefit of themselves and their creditors.

Primary Practice Areas

Chapter 7 Bankruptcy Law

Chapter 7, also called “liquidation” or “straight bankruptcy,” is the process by which a debtor’s assets are sold, creditors receive payment, and you are then free from your debts.

In a Chapter 7 bankruptcy, the individual is allowed to keep certain exempt property. Most liens, however (such as real estate mortgages and security interests for car loans), survive. The value of property that can be claimed as exempt varies from state to state. Other assets, if any, are sold (liquidated) by the trustee to repay creditors. Many types of unsecured debt are legally discharged by the bankruptcy proceeding, but there are various types of debt that are not discharged in a Chapter 7.

A Chapter 7 bankruptcy stays on an individual’s credit report for 10 years from the date of filing the Chapter 7 petition. This contrasts with a Chapter 13 bankruptcy, which stays on an individual’s credit report for 7 years from the date of filing the Chapter 13 petition. This may make credit less available or may make lending terms less favorable, although high debt can have the same effect. That must be balanced against the removal of actual debt from the filer’s record by the bankruptcy, which tends to improve creditworthiness.

Consumer credit and creditworthiness is a complex subject, however. Future ability to obtain credit is dependent on multiple factors and difficult to predict. more at Wikipedia

Chapter 13 Bankruptcy Law

Chapter 13 is a reorganization process that typically allows debtors to keep their property by making monthly payments that are distributed to creditors by a bankruptcy trustee.

Chapter 13 of the United States Bankruptcy Code provides an individual the opportunity to propose a plan of reorganization to reorganize their financial affairs while under the bankruptcy court’s protection. The purpose of chapter 13 is to enable an individual with a regular source of income to propose a chapter 13 plan that provides for their various classes of creditors.

Under chapter 13, the Bankruptcy Court has the power to approve a chapter 13 plan without the approval of creditors as long as it meets the statutory requirements under chapter 13. Chapter 13 plans are usually three to five years in length and may not exceed five years.

A Chapter 13 plan may be looked at as a form of debt consolidation, but a Chapter 13 allows a person to achieve much more than simply consolidating his or her unsecured debt such as credit cards and personal loans. more at Wikipedia

What are my options?

Are you considering debt relief through a consumer credit counseling service? You may be surprised to learn that they can do more harm than good to your credit. Many times, bankruptcy is a better option, and we will be happy to sit down with you and thoroughly discuss your personal situation in order to help you decide what is the best solution to your financial problems.

Testimonials

We are honored to help folks with their debt and we think this shows in these reviews.

“Everyone was very helpful. No matter how many times I called or how many questions I had.” Danny

“You all made me feel comfortable going through this Bankruptcy. Not at anytime did you make me feel belittled getting into this situation.” Richard

“The staff was very friendly and easy to talk to. John Rogers was also very friendly and easy to talk to.” Julie

We can help.